This is Why Investors Are Still Bullish on Gold

February 8, 2021, By smallcapfirm,

With the likelihood of more stimulus, and central banks saying they’ll keep rates low with necessary liquidity, gold could push higher. In fact, analysts at Citi for example have a $2,500 price target, comparing its catalysts to that of the rally between 1970 and 1980.  Others, like Frank Holmes, CEO at U.S. Global Investors have said, “It’s quite easy to see gold going to $4,000.  We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class.”

Plus, we have to consider the Labor Department said its consumer price index was up by 0.4% last month after gaining 0.2% in November.  That shows an uptick in inflation, which is supportive of higher gold prices, too.

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