Economist and gold bull Peter Schiff sees gold taking off to stratospheric levels as inflationary pressure stays alive.
What Happened: On Friday, gold futures for December delivery trading on the COMEX, CME’s futures and options market for metals, ended at $2,016.30 an ounce, up 0.89% from the previous session. Pointing to the $2K+ close for the week, Schiff said in a post on X, formerly Twitter, on Friday, “It’s possible that gold may never trade below $2K again.”
“If on Monday it gaps up to a new record high, sub $2K gold will likely be a thing of the past,” the economist said.
In an earlier post, Schiff said that, while investors expect gold prices to fall due to a rise in bond yield, inflation will likely cause both asset classes to soar.
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What Happened: The rise in gold prices reflects a flight away from risky bets amid rising geopolitical tensions. In times of uncertainties about the economy and the geopolitical situation, investment dollars will flow into safe havens such as gold.
The tensions in the Middle East continue to rage amid Israel’s retribution against strikes by Hamas militants. A precipitation could even result in a world war, experts opine. The October rally in gold has led to the yellow metal outperforming the broader S&P 500 Index, for the year.
The SPDR Gold Shares GLD rose 1.16% on Friday before closing at $186.15, according to Benzinga Pro data.
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