Gold could jump above $1,400 an ounce this year, with investors attracted to the safe-haven metal amid escalating fears of a global trade war, said CEO of Sprott U.S. Holdings Rick Rule.
“The most important determinant of the gold price has been international confidence in the U.S. dollar and in particular, the U.S. dollar as expressed by the U.S. 10-year Treasury,” Rule said. “The fact that the U.S. seems to be bound to engage in a zero-sum trade war has begun to strike people as something that’s bad for everybody in the world, not just the U.S. The potential for a winnerless trade war certainly gives cause to some concern.”
The purchasing power of the dollar will be carefully monitored as things escalate, Rule pointed out, noting that American debt relative to savings will weigh heavily on investors’ minds.
Another major event in 2018 could be the bonds bull market coming to an end, Rule added.
Reference: Kitco
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