The gold price spent the first part of election week trading close to $1,900 per ounce but spiked to around the $1,950 level mid-week. Speaking to the Investing News Network, Frank Holmes, CEO and CIO at U.S. Global Investors, said the price move from the yellow metal didn’t surprise him. In fact, he expects gold to rise much higher, largely due to global money printing.
“It’s not just America, but the G20 countries are really implementing and practicing in many different ways this MMT — Modern Monetary Theory — of giving out money, sending out money … this is unprecedented,” Holmes explained.
He continued, “This is a brand new world and we’re seeing it all over. So I think that gold will have a secular bull market … and I think today this is a sign of that.”
When asked if gold could break $2,000 again before the end of 2020, Holmes said “absolutely,” adding that the real question is if it can hit a new all-time high this year. Gold rocketed up during the summer, crashing through its previous high point at that time.
In the longer term, Holmes has a price target of $4,000 for gold.
He explains, “I think that gold will continue to grow because of this unprecedented money printing. The MMT, also the Federal Reserve putting out lifelines to 15 different countries, helping them with US dollars. All this money printing,” he emphasized.
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