Gold is exploding higher again.
In fact, the metal is now up to $1,804. All as investors rush to the safe haven investments on COVID-19 and trade war concerns.
For one, the U.S. just crossed 3.3 million cases, with Florida reporting an increase of 15,000 new cases in just 24 hours. The global count is now up to 12.8 million cases, with 568,296 deaths. Scaring investors a bit more is news President Trump is now not considering a “Phase 2” deal with China as tensions between the U.S. and Beijing worsen.
In fact, with coronavirus cases mounting, and fears about the health of the global economy, gold prices just settled at a nine-year high above $1,800 – the highest it’s been since September 2011. Coupled with falling interest rates around the world, a weaker dollar, and central banks flooding markets with liquidity, gold prices could make a return back to $1,900 – and fast.
From there, gold could easily run to $2,000, even $3,000, say analysts.
Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”
JPMorgan Chase advises investors to hedge their risk with gold.
Bank of America just raised its 18-month price target to $3,000 an ounce.