Assessments / Blog
COULD GOLD RALLY ABOVE $3750 BEFORE DECEMBER 2019?
We asked our researchers a question recently, “Could Gold rally above $3750 before the end of 2019?”. We wanted to see what type of research they would bring to the table that could support a move like this of nearly 200% from current levels. We wanted to hear what they thought it would take for a move like this to happen and if they could support their conclusions with factual conjecture.
Now we ask you to review these findings and ask yourself the same question. What would it take for Gold to rally above $3750 (over 200% from current levels) and why do you believe it is possible?
Our research team came to two primary conclusions in support of a Gold price move above $3750 :
A) The US Presidential election cycle/political environment could prompt a vicious global economic contraction cycle of fear and protectionist consumer and corporate activity that propels the global economy into a deflationary (mini-crisis) event.
B) The global trade wars could complicated item A (the US Presidential election cycle) and create an accelerating component to this global political event. The result is the mini-crisis could turn into “
a bit more” than a mini-crisis if the global trade wars prompt further economic contraction and disrupt global economic activities further.
Our research team suggested the following as key elements to watch out for in terms of “setting up the perfect storm” in the global markets.
A) The US Dollar falls below $94 and continues to push a bit lower. This would show signs that the US Dollar is losing strength around the world
B) The Transportation Index falls below $4350 and begins a bigger breakdown in price trend – targeting the $3000 level. This would indicate that global trade and transportation is collapsing back to 2007-08 levels.
C) Oil collapses below $45 would be a certain sign that global Oil demand has completely collapsed and the sub-$40 level would very quickly come into perspective as a target.
D) Global Financial stability is threatened by Debt/Credit issues while any of the above are taking place. Should any of the A, B or C items begin to take form over the next few weeks or months while some type of extended debt or credit crisis event is unfolding, it would add a tremendous increase of fear into the metals markets.
Click on this link to read more...
Link to previous articles about precios metals...