From * today:
Gold remains in a holding pattern with prices bouncing up and down around the $US1,700 mark. But AngloGold Ashanti chief executive officer Kelvin Dushnisky reckons it could rise beyond $US2,000 an ounce.
While gold slipped to $US1,697.40 per ounce — or about $2,617 per ounce in Australian dollar terms — on Monday due to the stronger US dollar, analysts say the low level of speculative interest also reduces the likelihood of a sell-off.
Speaking during a virtual media roundtable, Dushnisky said the quantitative easing being implemented globally along with the likelihood of interest rates being lower for longer meant there was every chance that gold prices could push past $US2,000 an ounce.
“That would not come as a surprise to me at all,” he added.
Meanwhile, CMC Markets analyst David Madden said continued tensions between the US and China as well as the prospect of a second wave of COVID-19 infections as economies began to re-open hadprovided a floor that prevented gold from falling further.
Commerzbank analyst Carsten Fritsch told***** Newsthatgold prices could climb noticeably if speculative investors were to jump inand that there was good reason for them to do so.
“They just need to look at the extremely expansionary measures taken by central banks and governments, which will lead to a massive increase in balance sheets and national debt levels,” he explained.
Analysts previously noted thatsigns were pointing towards a gold price breakout, pointing to the continued high US jobless claims and the US Treasury Department’s borrowings for stimulus programs to date.
Dushnisky’s prediction just adds to thebullish sentiment around where the gold price is headed.
