The macroeconomics research and analyst firm, Capital Economics has raised its price prediction for gold up by a massive 19%. It says that it now expects to see prices going higher and higher throughout the remainder of the year and for at least another 2 years thereafter.
The firm’s commodities economist, James O’Rourke said in a recent note issued yesterday (Tuesday), “This year, most of the decline in real yields initially came from a plunge in nominal interest rate expectations, but in recent months a rise in inflation breakevens has played a central role In the near term. We reckon that inflation breakevens will drift higher, back to pre-pandemic levels, as economies recover from their lockdown-induced slumps.
“Admittedly, if economic uncertainty fades, demand for safe-haven assets including gold should fall. However, this is only likely to take a little shine off the gold price, as ultra-low real yields remain a key support to continue to push gold to new all-time highs again and again.”
Buy now so you’re in prime position to benefit from soaring prices.
