Gold could hit $3,000 an ounce
There's no stopping the gold price. This week it hit a new record high above $1,260 an ounce, and it's showing no signs of flagging.
Gold just keeps rising. This week it hit a new record high above $1,260 an ounce. Ongoing jitters over Europe helped underpin prices. In addition, the news that Saudi Arabia's central bank had upwardly revised its estimate of its gold reserves was a reminder that "central banks are keen on the metal after two decades of selling" bullion, says Javier Blas in the FT.
Gold may now be set for a correction, however. Strong recent gains have left it vulnerable to profit-taking. As Dominic Frisby points out in our free daily email, Money Morning, the summer season is traditionally weak for gold. Moreover, gold stocks have been trailing the metal, which often presages a setback.
Still, the long-term outlook remains compelling. Supply is tight and there are plenty of potential worries to fuel demand for a safe haven. The eurozone could well break up. Fears that central banks could debase their currencies even further by printing yet more money are likely to intensify as a double dip becomes more likely. So David Rosenberg of Gluskin Sheff sees the yellow metal reaching $3,000 an ounce.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
UK-US trade deal announced: US cuts tariffs on UK car imports to 10%
Keir Starmer and Donald Trump have announced a UK-US trade deal, but the US president has refused to lift baseline tariffs on most UK goods. What does it mean for the UK?
-
How to use mid-caps to diversify from the US
Medium sized companies are overlooked by investors but could offer an attractive ‘sweet spot’. We consider the case for mid-caps amid market volatility.