Gold prices could hit £4,006 ($5,000) within three years says one industry strategist, who expects an upcoming U.S. recession to be the catalyst the bulls have been waiting for.
Industry veteran Michael Lee believes a recession will hit by the end of the present year, citing the devastating impact of inflation, a slow down in certain sectors of the economy and the knowledge that the full impact of the rate hikes imposed by the Federal Reserve has yet to be felt.
Lee also paints a picture of a labour market that is already faltering. His analysis of employment data indicates that figures have been revised lower each month this year. This could indicate that the economy isn’t as resilient as has been suggested – increasing the likelihood of a recession taking place.
Describing a recession as “unavoidable”, Lee says that he expects gold prices to rise on the back of a struggling economy. Should further issues arise, such as another banking crisis, we can expect gold to soar as high as £4,006 ($5,000).
