The gold price is working its way step by step forward again. Over the past few days, US President Donald Trump in particular has provided a tailwind with his Twitter news. On the one hand, he called on the US Federal Reserve to cut interest rates further. On the other hand, reports of a possible settlement in the trade dispute between China and the USA – or even no settlement – are causing a lively ups and downs.
For some, however, this is just a snapshot. On Monday, for example, Sean Boyd, CEO of gold producer Agnico Eagle, spoke in an interview with the internet portal kitco.com and said that the gold price was on its way to new all-time highs. In his view, gold started a new bull market in 2016. And even though it may take another two or three years, he believes the price of gold will break through the magic $2,000 barrier.
Surely it is still a little too early to talk about $2,000 or even more in the gold price. But as CEO of a gold producer, Sean Boyd cannot be impressed by the daily ups and downs. Certainly, Agnico’s strategy is not geared towards gold rising to 2,000 dollars. But if industry experts did not believe in a long-term rise in the price of gold, they would probably have chosen a different industry.
In the short term, gold is still trapped in consolidation. Even though yesterday gave reason for hope, the precious metal must leave its mark again today. There are rumours that the US and China could quickly agree on a contract that would at least partially settle the trade dispute, that would boost standard stocks but put precious metals under pressure. Thus, a decision on a direction is postponed for the time being. Investors should hold back on highly speculative leverage speculation for the time being.