FX168 (Hong Kong) (Reuters) International spot gold on Thursday (November 23) Asian session near 1290 US dollars consolidation, yesterday due to the weak US economic data and some Fed policy makers worried about low inflation, gold rose strongly by nearly 1%. As one of the biggest bulls in gold, Rob McEwen, chief executive of McEwen Mining, believes the price of gold has bottomed and the future could soar.
In an interview with an industry conference in San Francisco Wednesday (November 22), McEwen said people will eventually return to the gold market as the low interest rates extend further and potential geopolitical and financial risks stimulate the hedge nerve Come. He predicts gold prices will soar from the current level (about $ 1,280 an ounce) to $ 5,000 an ounce over the next five years.
He added that if this happens, the money "will frenzied like a tsunami into one place." McEwen said that "long-term low interest rates have helped the stock market, real estate and even the art market bubble, after all, the pursuit of high yields is the nature of investors."
McEwen notes that "while traditional wisdom suggests that rising yields will make interest-bearing assets more attractive, gold should become more attractive as markets recalibrate."
However, from the past history, McEwen's forecast is not very reliable. In September 2016, he had expected the price of gold to rise to the range of $ 1,700 to $ 1,900 an ounce by the end of the year. However, in fact, by the soaring dollar index, the price of gold at the end of 2016 trading below 1150 US dollars / ounce. Since 2011, the price of gold has fallen by one-third.
(Gold price trend Source: Bloomberg, FX168 Finance Network)