Gold caught between rising cases, vaccine

VanEck forecasts the price of gold will rise over $US3000 an ounce over the next to three to five years, driven by low real interest rates, blown-out balance sheets and a period of unfettered inflation.

"We’re going to be in a negative real rates environment for a while. That’s a very strong environment for gold and that provides the fundamental backdrop for our forecast," said Mr Foster.

"Countries all over the world have been blowing out their balance sheets by distributing trillions of dollars of QE. We’re seeing liquidity being pumped into the financial system on a scale we’ve never seen before.

"All this liquidity is creating a very high risk to the financial system." We’re living in an era of heightened risks that favour gold as an investment vehicle and I can’t see those risks abating any time soon. Morgan Stanley analysts were less optimistic those conditions would drive a rally […]

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