The Top Catalysts for Higher Gold Prices

With investors pushing into the safe havens of gold, the metal now sits just under $2,000.

From here, $2,500 is possible as gold edges up on U.S. dollar weakness, and hopes the Federal Reserve will maintain its dovish monetary policy.  “The Fed is expected to maintain the target rate of inflation, we’re going to run 2% for some time and they will increase Quantitative Easing (QE) buying, so gold should remain supported on that,” said Phillip Streible, chief market strategist at Blue Line Futures, as quoted by CNBC.

Helping, Warren Buffett’s Berkshire Hathaway has just started to jump into gold miners, like Barrick Gold.

“In the past, Buffett, the billionaire chairman of Berkshire, cautioned against investing in the metal because it’s not productive like a farm or a company. Now, gold miners are benefiting from surging bullion prices that are boosting profit margins as costs of production have steadied, making them increasingly attractive investments. Large miners including Barrick and Newmont Corp. have been hoping to woo back generalists who fled the sector years ago,” says Bloomberg.

Goldman Sachs says we’ll see higher gold prices on low real interest rates and currency debasement concerns. In addition, Elliott Management’s Paul Singer still says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”

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