Tags: bridgewater | gold | price | central banks | ease

FT: Bridgewater Sees Gold Rallying 30% as Central Banks Ease

FT: Bridgewater Sees Gold Rallying 30% as Central Banks Ease
(Pfluegelr/Dreamstime)

By    |   Friday, 17 January 2020 01:09 PM

Bridgewater’s co-chief investment officer Greg Jensen recently predicted that gold prices could rally 30 percent to $2,000 an ounce.

The manager from the world’s biggest hedge fund cited increased income inequality in the U.S. and rising tensions with China and Iran as uncertainties that will prompt more safe-haven buying, the Financial Times reported.

Jensen also believes the Federal Reserve would let inflation run hot for a while, which also creates an environment for higher gold prices.

Safe-haven gold edged 0.3% higher to $1,557.12 per ounce Friday, but was headed for first weekly decline in six. Prices were down 0.3% for the week, Reuters reported.

U.S. gold futures rose 0.4% to $1,557.12.

“There is so much boiling conflict,” Jensen told the paper. “People should be prepared for a much wider range of potentially more volatile set of circumstances than we are mostly accustomed to,” Jensen told the paper.

There's continued interest in gold buying with political, geopolitical and economic worries globally and haven-seeking buyers in countries with weak currencies, said George Gero, managing director at RBC Wealth Management.

Gold is also facing some headwinds with stocks at record highs, which is keeping it in a range of about $1,550-$1,580, Gero told Reuters.

"You would expect gold to trade a little bit lower after the economic data from China. (But) what is pushing gold prices higher is the sense of caution as to what to expect after the Phase 1 trade deal," said FXTM analyst Lukman Otunuga.

"I think the sense of uncertainty and caution is encouraging investors to take positions in gold."

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
Markets
Bridgewater’s co-chief investment officer Greg Jensen recently told the Financial Times that gold prices could rally 30 percent to $2,000 an ounce.
bridgewater, gold, price, central banks, ease
262
2020-09-17
Friday, 17 January 2020 01:09 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved