(Kitco News) - While the U.S. presidential election seems to be fueling market volatility, one trend forecaster expects “fear” to rule the marketplace, which should continue to bode well for gold prices.
“We forecast multiple ‘fear actors’ rattling equity markets long after the U.S. presidential elections,” noted Gerald Celente, founder of the popular newsletter Trends Journal, in his latest post Wednesday.
“Therefore, we maintain our forecast that when gold prices stabilize above $1,400 per ounce, they will spike toward $2,000.”
Gold futures have rallied above $1,300 an ounce Wednesday as markets await the outcome of the Federal Open Market Committee meeting. Markets continue to anticipate the Fed to raise interest rates this year, pricing in a 73% chance the central bank will tighten at its December meeting. December Comex gold futures were last up 1.5% at $1,307.60 an ounce.
However, to Celente, central banking policies have failed and in the current environment of sluggish growth and continued easing, gold prices are set to move higher.
“There is now a general consensus that record-low-interest-rate and massive central-bank quantitative-easing policies have failed to generate global growth, and their ability to impact future economic policy is doubtful,” he said.
“Thus, while volatility may subside following the election, trend lines for a deep market fall and sharp rise in gold prices are based not on a ‘fear index’ of emotions of who wins the White House, but rather indisputable market fundamentals.”
By Sarah Benali of Kitco News;