After hitting record highs in euros and British pounds, gold could be ready for new record highs in U.S. dollar terms, according to Bloomberg Intelligence (BI).
Gold prices had a stellar August, with the metal hitting new all-time highs in multiple currencies as well as reaching fresh six-year highs in U.S. dollars.
After five years of price consolidation, there is an “unprecedented” foundation for higher gold and silver prices, McGlone pointed out.
“Markets are in the early days of acknowledging the potential upside in primary store-of-value, quasi-currency, diversifier assets gold and silver, in our view. Plunging and increasingly negative bond yields, central-bank easing, trade and currency wars, elevated debt-to-GDP levels and a contentious U.S. presidential relationship with the Federal Reserve are price tailwinds,”
Gold bull rally is only in second inning; price "explosion" yet to come
We’re going to see a more explosive, a more volatile [gold market], and that’s simply because so long as the stock market…one thing you don’t want to see if you’re a gold bull, you don’t want to see a stock market crash, because money would be lost and not be able to switch over. I think they’ll be more of a rollover in the stock market,” Grandich said. “I don’t think there will be another general equity bull market in my lifetime.”