Would love to share some economics 101, as I enjoy helping people who are likely misguided in their assumptions.
Donald Trump decides to bail out every company in America and all the workers as well with his helicopter money of a stimulus package. US doesn't have the money to do this as they are broke, so have to run the printing presses faster than they ever have before and this explodes US debt out of the ball park.
At the same time the Fed drops interest rates to zero and starts their own QE as well.
US dollar devalues ( has started) , and with more money in the system but no extra productivity from the economy the US dollar continues to devalue. Suddenly the overseas imports that Americans love so much start costing more and there is an upward surge in Inflation which also reduces the real value of US equities and sees investors looking for a safe haven to protect capital from this spike in inflation and the lack of any decent return on cash , which sees them flock into buying gold and of course the normal supply/demand factors apply and gold continues a long upward trend from the current price.
Now based on the above explanation, can you see any flaws in your prediction of gold going down to $1200 Oz US ?
Happy to provide an alternate view to your own.
Christopher
SAR Price at posting:
$3.50 Sentiment: Buy Disclosure: Held
