2020 has been turbulent, to say the least. And with just two weeks remaining in the year, another stimulus package is approved by Congress.
At $900 billion, the new bill is smaller than the first stimulus package; the $2.2 trillion CARES Act passed in March.
However, the gold market responded just as strongly to the news this time as it did to the first stimulus.
In fact, gold went on an instant run, eventually breaking its six-week price high reaching $1,896.56 per ounce.
Stephen Innes, chief global market strategist at financial services firm Axi, believes that it will continue to climb higher and eventually revisit the $1,900 levels before year-end.
Innes was quoted in a recent Reuters interview saying, “Now that we’ve got fiscal stimulus behind us, gold has enough momentum to close above $1,900 by year-end, and it could climb up to $1,925.”
But Stephen isn’t the only professional calling for a continuation in gold’s price and performance.
Steve Dunn, head of exchange-traded products at Aberdeen Standard Investments, expects gold prices to push above $2,000 an ounce the new year.
Amit Sajeja, VP Research – Commodities & Currencies at Motilal Oswal, also shares a bullish view on gold for 2021.
Sajeja shares insight from across the globe, stating that, “the safe-haven appeal and investment demand in gold is coming back. Rising COVID-19 cases in UK and Europe along with the approval of stimulus package in the US is supporting the gold prices.”
Now take into consideration that this may not be the final stimulus bill that will be passed.
Steve Dunn stated, “From everything I have seen, it would lead me to believe that this is probably not the last stimulus package, as some of the issues we face are structural issues that will certainly haunt us into 2021, from an economic perspective.”
Earlier this year when the first stimulus package was announced, it was less than five months when gold broke its all-time high and set a new record of $2,074— a 40% increase.
How much higher will gold run this time in reaction to the second stimulus? What if there is a third stimulus package to be expected next year?
Experts from across the globe believe 2021 will be an excellent year for gold- are you prepared? Call American Hartford Gold at 800-462-0071 to learn how precious metals can help protect your wealth now.