Gold: Analyst sees new all-time high

The gold price continues to work its way up to the 1,470 dollar mark. But according to analysts Bloomberg Intelligence, it won’t stay that way much longer. They assume that gold is ready to reach a new all-time high. Senior analyst Mike McGlone explains that neither stocks nor dollars could rise forever. And a setback could make gold reach a new all-time high.

 

“It’s a new year and a new decade and gold should join the all-time high club,” McGlone explains. It would be quite normal to back down on stocks and dollars. And that, in turn, would play into the cards of the gold price. It’s more a question of when that happens, not whether that happens. The outlook for gold therefore remains good for the coming year. This contrasts with the outlook for other commodities – especially oil. The relative strength that gold is already building is also an indication that the rally will continue in the coming months. Gold has gained around 15 percent in value in the current year, even though the US dollar index has also gained around two percent. By the way, Bloomberg Intelligence currently sees a very normal recovery. The new bull market would only begin when gold would jump over 1,900 dollars an ounce.

 

Bloomberg’s argumentation can certainly be accepted. The problem: As an investor, you might miss out on a lot if you really don’t get in until the gold price jumps above the 1,900 dollar mark. By then, the mainstream should already have become aware of the issue and the first 100, 200 or even 500 percent should already have been registered, especially for mining stocks. Investors are certainly not well advised to wait that long. There are currently plenty of opportunities. The charts of some mining stocks almost scream for higher prices.