For those who haven’t been paying attention, gold prices have been on a tear, surging nearly $60/ounce this week.
Some are attributing this move to the dovish talk out of the world’s central banks.
“The ECB is ready to do whatever it takes to preserve the euro,” said European Central Bank president Mario Draghi yesterday morning.
Peter Schiff of EuroPacific Capital told King World News that this means the ECB will print tons more money, which would devalue the currency and send gold prices higher.
Schiff thinks that gold could soon surge to all-time highs.
From King World News:
I’m surprised that gold is not rallying even more considering what’s happening. Gold has now broken out of a channel. There was a very nice trendline and we just broke out of that today. Now that we have broken out of that channel, there is a lot of room to the upside. The next channel for resistance appears to be another $100 higher than current levels for gold.
If gold breaks above the $1,650 level with conviction, then I think we are looking at retest of the all-time highs from late summer of 2011. And nobody is really anticipating that because these gold stocks are priced for a collapse in the price of gold, not a return to the highs.
I think, ultimately, we take out the highs and we go a lot higher. At some point, if I’m right, these gold stocks are going to take off because they have a lot of catching up to do.”
Read more at KingWorldNews.com.
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