Gold on course for £2,023 ($2,800) in the short term

The investment advisory firm, Edelweiss says investors should be buying gold right now to maximise their investments as it forecasts a run to £2,023 ($2,800) in the medium term.

In a briefing report, the Edelweiss chief market strategist, Sahil Kapoor says the rebound in dollar prices we’ve seen over the course of the last few weeks is nothing but good news for gold investors because it has created a lucrative opportunity to buy the dip. The rebound will then be followed by longer term losses, which is supportive of a multi-year bull run.

Kapoor writes, “We believe that the possibility of a short term U.S. dollar rebound due to risk aversion should be utilized to add to gold investments. With record global debt and MMT in place, there is more certainty that it is about time that gold will reprice itself to account for dollar debasement. When faith in the modern monetary system is shaken, there is a tendency to shift towards hard assets, probably justifying why central banks across the globe have been net buyers of gold bullions since the Global Financial Crisis.

“The U.S. dollar Index is likely to remain softer after a rebound in H1 2021. Moreover, worldwide currency debasement should favour gold prices across countries. Gold has done well in time of fiscal easing and more so when is it coupled with current account deficits widening. This year will be historic in taking the twin deficits to the unprecedented 25% of GDP.”

Act quickly and buy now to tap into this opportunity.

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