According to #Wells #Fargo, who saw signs of an emerging rally, investors could still see some of the strongest gold price movements this year. According to Wells Fargo's John LaForge, we could see up to $ 2,200 per ONS this year in gold prices.
🚨John LaForge: This year we can see gold prices up to $ 2,200 per ONS
The driving force behind this new spark in prices is reducing the increase in supply. John LaForge, head of real assets strategy for Wells Fargo, said he could get up to $ 2,200 per ONS this year in gold prices. John LaForge said in his latest market update:
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GOLD RESOURCES WENT FROM EXTREME TO NEGATIVE. SUCH TIMES IN THE PAST HAVE SPARKED SOME OF GOLD'S STRONGEST PRICE RALLIES. GOLD PRICES HAD A HARD TIME AHEAD OF 2018 DUE TO EXCESS SUPPLY. SUPPLY BECAME EXCESSIVE IN 2011 BECAUSE GOLD PRICES ROSE FROM $ 250 TO $ 1,900 PER ONS IN TEN YEARS FROM 2001 TO 2011. MANY INVESTORS WERE LOOKING FOR GOLD DURING THIS DECADE AND IT ALL SEEMED TO FIND IT…
👉Popular Analyst: Lock On These Levels And Developments For The Gold Price!
John LaForge: A historic moment for gold, and there could be more gains
However, this picture has changed over the past three years, with the gold supply shifting from "extreme" to negative. This is the reason Wells Fargo turned positively on gold. John LaForge said:
TIMES OF THIS KIND IN THE PAST HAVE SPARKED SOME OF GOLD 'S STRONGEST PRICE RALLIES… WE BELIEVE GOLD COULD BE ON THE EVE OF A NEW COMMODITY BULL SUPER CYCLE, AND THIS MAY ONLY BE THE SEVENTH SINCE 1800. THE PRICE OF GOLD HAS INCREASED BY OVER 40% SINCE 2018 AND WE BELIEVE THERE WILL BE MORE GAINS IN THE FUTURE.
According to Wells Fargo, besides the supply argument, gold will also be driven by more well-known trends such as low real interest rates, currency printing, and the weak US dollar. John LaForge said:
THESE TRENDS REMAIN LARGELY INTACT, AND WE REMAIN THE GOLD BULLS WITH THE 2021 TARGET RANGE BETWEEN $ 2,100 AND $ 2,200.