The coronavirus’s impact on mining not only prevents an expansion of supply, but may actively shrink new production at the very moment gold demand is surging.
by Guest Writer
The International Forecaster
“Another Firm Predicts $2,000 by Year’s End”
By Dave Allen: Another major trading firm is riding the gold bull. This one comes from TD Securities, which is projecting a near-term move to $1,800 an ounce followed by a jump to $2,000 by year-end.
Gold prices rallied along with risk assets this week (not counting today). At one point on Tuesday, April Comex gold futures even returned to $1,700 before settling down some.
All told, for the week, spot gold is up about $128 or 8.6% at just shy of $1,621 as of mid-afternoon today. That’s gold’s best weekly performance since March 2016.
There are a number of factors driving gold at the moment and, once the COVID-19 outbreak peaks, constructive price conditions will remain, according to TD’s head of global strategy Bart Melek.