Gold prices could rally well above $2,000, near-term. For one, investors are turning to gold as a safe haven with geopolitical issues raging out of control. Two, gold still has plenty of room to run higher, especially with the U.S. debt problem creating further economic uncertainty. Three, central banks are still loading up on significant amounts of gold.  

In September alone, central banks bought 77 tonnes of gold. Even more impressive, sales of one tonne were overshadowed by gross purchases of 78 tonnes. In August, central banks also added 77 tonnes – a 38% uptick month over month. In July, they bought 55 tonnes of gold. 

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Central banks were buying up gold in the first half of the year, too. “Despite a year-on-year decrease of 103 tons in purchases during the second quarter, net purchases by central banks worldwide still hit a record-breaking 387 tons in the first six months of the year, according to the latest data compiled by the World Gold Council (WGC),” as noted by Global Times.  

That being said, investors may want to consider gold stocks, such as Barrick Gold (GOLD).


Ian Cooper