Bloomberg Intelligence says gold will smash through £1,412 ($2,000) price level

Bloomberg Intelligence this week confirmed that it expects gold to breach £1,412 ($2,000), noting that the current price represented a ‘steep discount’ – this means now is the right moment to buy if you’re prepared to move fast and take action right now to capitalise on this window of opportunity.

Senior commodity strategist Mike McGlone says that gold has been unleashed now that the headwinds of higher yields and digital currencies have been curtailed. At the same time, he says that the current price levels are not indicative of true value and are certain to change soon, making a swift move to buy now all the more pressing. He said, “The worst of the gold correction appears over, and we see technical and fundamental drivers pointing to a resumption of the bull market. Strong headwinds from parabolic Bitcoin and rising bond yields appear to have run their course.”

He explained that weaker employment data in April and May also means that the precious metal is already primed to move higher and may exceed £1,412 ($2,000) even before the next set of data relating to June’s employment figures is published.

Noting that gold is “at an unsustainably steep discount to its more enduring upward trajectory vs. crude oil” McGlone forecasts a move to the upside in the short term saying, “It’s the battle between the most significant commodity with low elasticity of supply, gold, vs. a highest, crude oil, and we expect trend resumption favouring the metal. In a world of rapidly advancing technology and seemingly unlimited fiscal and monetary stimulus attempting to offset deflationary forces, the ratio of the price of gold vs. Brent crude oil appears as a discount that has limited further downside.

“If the 2021 yield high of about 1.75% is in, it’s likely that so is the gold bottom. A big difference from the gold low of about three years ago is that the U.S. underemployment rate was near 5% vs. 10% now.”

Don’t delay – buy now.

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