The gold market rose for the third week in a row last week, with spot gold prices back around $1880 an ounce. Affected by the agreement reached in a new round of US bailout programs on Monday, it rose sharply above 1900.
With less than 10 trading days left this year, it must be an extremely eye-catching year for gold.
Peter Hug, global head of trading at Kitco, believes gold is expected to hit $1925 an ounce by Christmas this week.
Last week's Fed interest rate decision was not much of a surprise, and loose monetary policy will continue.
Hug pointed out that Federal Reserve Chairman Colin Powell's statement clearly shows that they will accelerate easing and that there will be no tightening until 2023.
"that means the Fed has at least two years of easing and flexible inflation targets."
Hug believes gold will continue to be bullish until the global economy returns to normal in the third quarter of next year.
"both from a fiscal point of view and from a central bank point of view, both will continue to ease, which will push the US deficit to continue to grow and the dollar to weaken, which is good for gold."
Hug pointed out that the market has basically counted 900 billion dollars in new projects, if there are small projects, then the market will be disappointed.
"in addition, there is Brexit. The possibility of reaching an agreement and leaving the EU without an agreement is basically 50-50. Once there is no agreement to leave the EU, it is good for gold."
Brexit without an agreement means a lot of uncertainty, which could lead to panic, and people will flock to gold.
Hug points out that after crossing the $1900 / oz mark, the next step is to look at the 1925 level.
