$1700 Gold to Be Seen Soon?

There is no question that bullish momentum has been building in the gold market in recent weeks. A variety of factors including the ongoing trade war, the current economic slowdown and the potential for lower rates are just a few of the issues driving the yellow metal higher.

It seems that an increasing amount of investors have been sounding the alarm bells about the U.S. and global economies, and according to a recent article from Kitco, billionaire investor Paul Tudor Jones is one of them.

The article quoted Jones as saying in an interview with Bloomberg that “Gold has everything going for it.” He also reportedly suggested that if the yellow metal is able to break through the $1400 per-ounce region, that a move to $1700 gold per-ounce could take shape “rather quickly.”

The global economy does appear to be in serious trouble, and the ongoing war on trade could put the economy back into a recession.

Since a deal was rumored to be close several weeks ago, talks fell apart rapidly, and both the U.S. and China have pushed back from the bargaining table. There is hope that President Trump and Chinese Leader Xi Jinping will talk at the upcoming G20 summit, however, a deal at this point appears to be far off.

The continuing tariff war has already had a measurable effect on the economies of both countries, and another round of tariffs could potentially push the global economy into recession.

The Fed seems to recognize the fragility of the situation and appears ready to begin cutting interest rates again in order to combat the slowdown. Markets are pricing in a high likelihood of a rate cut next month, and now suggest that the Fed will cut rates three times this year.

The question is:

Will another round of rate cuts be enough to keep the economy from contracting into recession. If not, the central bank could be forced to resort to alternative measures as well, such as expanding its balance sheet through another round of QE.

The current combination of a slowing economy, geopolitical risks, the potential for lower rates and the war on trade could be the perfect recipe for higher gold prices.

The gold market is already exhibiting increasing upside momentum and could be gearing up for an explosive move higher. The time to act is now.

Adding gold to your portfolio has never been easier and possibly never more important. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the key role it may play in the years and decades ahead. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation using an IRA account.

Don’t wait for the next major global recession to take hold, fueling massive equity market declines along with it. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.

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