Gold prices can continue to climb even after they hit a multi-year high last week, a global investment strategist said Monday.
In fact, prices are set to “reach $2,000 by the end of the year,” predicted David Roche, president and global strategist at London-based Independent Strategy.
Gold prices have been on an upward trend amid recent expectations of a Federal Reserve interest rate cut and heightened geopolitical concerns — conditions that might weigh on the stock market, according to Roche.
“I actually believe financial markets are now poised to crumble like a sand pile,” he told CNBC’s “Squawk Box.”
Despite gold price breaking a major multi-year major resistance level at $1400, $2000 by the end of the year is a bit aggressive.
And with the likelihood of the Powell lowering rates following the strong jobs report last Friday, declines in the US dollar should stabilize, which will put a ceiling on gold prices at least short term. In additional, in order for David to be right, price would have to breach the monthly supply zones at $1600 and I don’t see that in the cards for gold prices this year. Nevertheless, if you don’t have gold in your portfolio, you should consider adding some to your portfolio.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.