Trend Forecast

As a Trends Journal subscriber, you are well aware of our long-stated forecast for gold to shine as a safe-haven commodity amid escalating economic turmoil and widening geopolitical tensions. (See The Last World War, Winter Trends Journal, p 10.)

As we go to press, gold prices have increased over 20 percent since the start of the new year. One of the reasons for its ascent is a weak dollar (the weaker the dollar, the higher the price of gold). Thus, in a world of negative/low interest rates and low expectations among investors for the Federal Reserve to considerably raise them, gold, while providing no yields, performs better in a safe-haven investment climate.

Moreover, our forecast and analysis for a new gold bull run is established on broader Globalnomic® indices, including current and emerging geopolitical and socioeconomic factors. Thus, we maintain our forecast that gold must break through $1,300 an ounce, stabilize above that mark and reach $1,400 per ounce. After finding strength above the $1,400 range, we anticipate a sharp gold spike toward $2,000.