Loading ...The collapse in energy demand – also put at 10% by analysts Rystad Energy – signals economic depression, reckons Mike McGlone, senior commodity strategist at Bloomberg Intelligence, and that suggests “unlimited upside [for gold prices] because central banks have unlimited firepower” to try and fight the recession.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” agrees US financial giant Bank of America in a widely quoted note entitled ” The Fed can’t print gold.”
“Give some kudos to Bank of America for coming up with such a catchy headline,” says one London bullion desk in a note to client. “They see gold at $3,000 in 18 months and…I can agree broadly with their line of thinking as we are entering a new era of financial largesse worldwide.
“The need for long-term capital preservation will be acute.”
US financial giant Bank of America in a widely quoted note entitled ” The Fed can’t print gold.”
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