Prepare for Massive Rally – SocGen’s Edward’s Gold price forecast foresees spot rates hitting upwards of $9,900 per ounce.
Gold is about to experience a massive price rally, erasing its recent lackluster performance for investors smart enough to act now. At least, that’s the latest gold price forecast of Albert Edwards, head strategist at Societe Generale.
Gold certainly isn’t everyone’s favorite commodity at the moment. And the belief that the Federal Reserve is set to raise interest rates as early as September doesn’t help matters. Because gold doesn’t return interest or pay dividends like some other assets, higher interest rates make them even less desirable. This has put the “safe-bet” into an awkward market position, and convinced a great many analysts and traders that it’s to be avoided.
Edwards, however, sees the current market weakness of the yellow metal as only the prelude to a massive price rally. In a report obtained by Newsmax, the economist points out the financial fragility of Western central banks. He alleges that they have set themselves up for a crisis on a far larger scale than the one in 2008.