Why Gold Price is Set to Test $2,000 Lickety-split
Joy of the Trade Head Trader Jeff Zananiri joined Midas Letter to discuss gold’s strong upwards trend recently and the divergence between the commodity’s spot and next month future price.
Gold futures finished for the second straight day above $1,700. Traders are investing into the precious metal commodity as the outlook for economic growth and the inclination of negative interest rates in the U.S. have spooked traditional equity investments.
With the state of the economy during these Coronavirus pandemic times, the Head Trader sees the price of gold hitting $2,000 very soon and provides a safety play which makes sense in the short and longer term.
The duo discuss how they trade the commodity in various ways including gold-backed exchange-traded funds. ETF’s for precious metals trade like a stock but track the price of the commodity, with the precious metal being put into storage to back the shares.
We recently hosted a webinar with the world’s leading gold experts such as Eric Sprott. We discuss the role gold will play during both the new recession and the eventual recovery. Watch the full video below which helps traders and investors of all experience levels understand the role of gold in the post pandemic economy… which will allow you to prosper in the new bull gold market!