Times to look at what is coming, SPA is the cheap stock New Economic reality:
1: The Fed is more then warning,
2: Major banks are cautiously forecasting higher price for gold.
3: More and more investors are turning to gold.
1:Fed officials suggest U.S. recovery may be stalling
Reuters Thursday July 09, 2020 08:38
(Reuters) - Federal Reserve officials raised fresh doubts on Wednesday about the durability of the U.S. recovery, while new business surveys highlighted developing risks from the relentless coronavirus pandemic.
In separate appearances, Atlanta Fed President Raphael Bostic and Richmond Fed President Thomas Barkin noted what Barkin characterized as “air pockets” facing the U.S. economy - businesses exhausting existing order books without refilling them, and households facing the end of unemployment benefits and other support.
2:Real rates to drive gold prices higher - TD Securities
Kitco News) Real rates will ultimately drive gold prices higher, says TD Securities. “The yellow metal is torn between its safe-haven bona fides, which are prompting money managers to sell on risk-on behavior in markets, and its inflation-hedge characteristics, which are driving a swarm of capital to seek refuge in the yellow metal. Ultimately we anticipate that real rates will continue to drive gold prices higher as normalizing inflation expectations and suppressed rates vol provide fuel for the trade
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3:Volatility indicates gold is heading to $1,850 - RBC Wealth Management
“... New buyers are now joining in the rally, Gero adds. “Long-term gold investors are buying gold consistently through ETF for months; now seeing new buyers who joined momentum due to up moving prices,” he says. “Low interest rates globally, more debts due to stimulus expected supporting gold.”
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