Gold prices are about to hit $2,300.
All thanks to global tensions, hopes for interest rate cuts from the Federal Reserve, and consistent buying from global central banks. From its last traded price of $2,292.04, we’d like to see gold rally to at least $2,500 ahead of the U.S. elections.
According to MarketWatch, “Central banks will keep buying: Gold has moved up a lot because central banks are buying – particularly the central bank in China. It’s a big buyer because Chinese political leaders noticed that Russian government financial assets including bonds and reserves got confiscated by Western governments after Russia invaded Ukraine.”
That being said, investors may want to consider gold stocks, such as Newmont Mining (NEM), which recently jumped from a February low of about $29 to a recent price of $37.72. From here, we’d like to see it test $42.