Gold to remain above $2000??
Whilst we are very bullish that a gold price in excess of $2,000 will soon be ‘the norm’ it is very likely that today will see a routine round of profit taking as investors cover their long positions and in doing so offset their positions with a sell order.
Profit taking or not, all the reasons as to why gold has been storming ahead still remain. Even while inflation appears to be faltering and the US economy is still doing well, there are still clear signs that we may witness sticky inflation and tepid growth. For traditional portfolios, the “stagflation” scenario—in which stocks experience price pressure but bond payouts decrease over time—can be fatal. And this is just one of many strong reasons why you need to hold gold in your portfolio.