Bullion briefly spiked to $1,702 on Monday, its highest since December 2012, as equity markets across the globe tanked. Gold closed Monday at $1,665, barely moving from Friday’s finish of $1,674.
Today, as we go to press, gold is down some $20 from yesterday’s high following slight rebounds in equity markets in Asia and Europe.
Silver continues its downward trend. Fears persist that demand for silver, which is used in manufacturing, will continue to slacken during a projected economic slowdown.
TREND FORECAST: We maintain our forecast that gold prices will hit $2,000 per ounce when gold breaks above $1,725. The downside risk is $1,550 an ounce should equity markets strongly rebound and interest rates on 10-year Treasury notes strongly rise.
When gold spikes above the $2,000 range, we forecast silver prices will sharply rise as well.
