SMM: gold has been in a wide trading range for the past two months, but Jeff??Clark, a senior precious metals analyst at Goldsilver.com, said there was a long list of fundamentals supporting the market.
In June, Clark advised investors to increase their holdings of gold. Despite increased market volatility, he said recently that nothing had changed his bullish outlook.
"there are too many reasons to hold gold. I mean, gold now has more catalysts than my hair, "he said." if you are the god of gold and you have designed an environment conducive to gold, you can never imagine a more perfect environment than we have now. "
He pointed out that the chaos and uncertainty of the US election, social unrest and concerns about the fundamentals of the dollar, the economic chaos caused by the novel coronavirus pandemic, an unprecedented amount of monetary and fiscal stimulus, expectations of more stimulus packages, and low or even negative real interest rates are just some of the factors that continue to drive precious metals prices.
"I'm still buying gold. I was still buying silver, especially during the pullback, until someone told me that all these problems had been solved, "he said."
While gold prices have fallen from record highs in August, the Clark said that given so much global uncertainty, it could be pushed above $2000 without a major catalyst.
"I would be very surprised if our price does not exceed $2000 by the end of this year. However, on the whole, any price drop here is a buying opportunity for me. "
As gold prices are expected to rise, there is still an opportunity to discover the value of gold stocks, Clark said. He added that he expected companies to report extraordinary third-quarter results at the end of the month.
In the second quarter, the average price of gold was about $1710. The average price of gold in the third quarter was more than $1900. So gold rose another $200 between the second and third quarters, "he said.
Gold producers have not only seen prices rise, but costs have remained relatively stable, meaning margins are likely to continue to rise, Clark said. If profit margins continue to grow, the industry still has a lot of value for investors, he added.
