Lobo Tiggre of the Independent speculator newspaper said it was only a matter of time before concerns pushed up demand for safe havens, which is why the dollar and gold have been rising at the same time over the past month.
Gold briefly breached $2000 an ounce between 5am and 6am eastern time on Monday before falling back. It will be the first time gold prices have reached this level since August 2020. Spot gold was last quoted at $1998.60 an ounce.
'The next move for gold should be down, not up, 'Mr. Tiggre said.
"to be honest, my next goal may be down, in the short term," he said. I doubt that the fierce fighting in Ukraine will not last long. When the fighting dies down, the fear will subside, and the near-term positive of gold will turn into a headwind. "
Long-term fundamentals, including high inflation, potential stagflation and negative real interest rates, should push gold back above $2000 by the end of the year.
"I think there are real downside risks in the short term when the war ends in one way or another," he said. " "I do think that in terms of inflation and stagflation, gold still needs to rise by another $2000 by the end of the year and another $2100 by the end of the year," he said. If we reach the inflation-adjusted high, it is plus $2800. By the end of this year, this will not be difficult to achieve. "
Spot gold daily chart
Spot gold was quoted at US $1987.22 an ounce at 11:24 Beijing time on March 8th.
