Gold Prices: Today’s Predictions on the Precious Metal

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Mike Hammer | October 16, 2019 10:48am NYSE:GLD

NYSE:GLD | News, Ratings, and Charts

Seems everyone has “predict the price of gold” fever. Not quite sure why – is it the sudden onset of fall weather? Or something in the water?  Maybe the specter of the looming US presidential election?

Whatever it is, here are the latest predictions from big institutions.

Not exactly recently, but Citigroup went on record in early September saying they expect gold to hit 2000 USD/troy oz in the next 2 years.

HSBC said yesterday they’re looking for 1605 by the end of 2020.

Standard Chartered is looking for 1570 by the end of next year.

Finally, Credit Suisse (CS) didn’t give a firm prediction but opined that gold “has many supports” at the 1500 price.

Meanwhile, this morning gold is up slightly in premarket US trading following disappointing US retail sales numbers.  Good earnings reports from BAC, BK, and UAL see those stocks up slightly in a lower overall market.

What does it all mean? To this Gold Enthusiast, it means institutions are aware that the overall investing environment isn’t the greatest right now, and there’s no easy solution in the next year. When uncertainty grows so does interest in gold and other safe havens.

The contrarian argument would be that when everyone sees things one way, we’re near the end of the cycle and you should start looking for signs of the opposite.  Trust me, we’re watching closely – but we still think there’s more to the downside than the upside in the equities markets, which will be good for gold in the future.


The Gold Enthusiast

DISCLAIMER: No specific securities were mentioned in this article. The author is long the gold sector via positions in NUGT, JNUG, a few junior miners, and covered calls on parts of the NUGT and JNUG positions. The author may initiate new covered call positions in NUGT and/or JNUG in the next 72 hours if market conditions warrant.

The SPDR Gold Shares (GLD) was trading at $140.10 per share on Wednesday morning, up $0.49 (+0.35%). Year-to-date, GLD has gained 13.30%, versus a 12.10% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy) and is ranked #1 of 33 ETFs in the Precious Metals ETFs category.

About the Author: Mike Hammer

Mike HammerFor 30-plus years, Mike Hammer has been an ardent follower, and often-times trader, of gold and silver. With his own money, he began trading in ‘86 and has seen the market at its highest highs and lowest lows, which includes the Black Monday Crash in ‘87, the Crash of ‘08, and the Flash Crash of 2010. Throughout all of this, he’s been on the great side of winning, and sometimes, the hard side of losing. For the past eight years, he’s mentored others about the fine art of trading stocks and ETFs at the Adam Mesh Trading Group.

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