Gold market continues to struggle to attract bullish momentum while fiyadollarsar hovers above $1,800. However, the precious metal still enjoys huge support from major billionaire investors. Cryptocoin. com
As , we have compiled the latest developments in the yellow metal market for you, let’s examine it together…
John Paulson: Gold prices will turn yellow parabolic!
This week, John Paulson, chairman and portfolio manager of Paulson & Co, and Mark Mobius, founder of Mobius Capital Partners, issued bullish calls for the precious metal. In an interview with Bloomberg’s David Rubenstein on Monday, John Paulson said he prefers gold to Bitcoin and that the precious metal looks attractive in the current inflationary environment. John Paulson commented on the subject:
Gold does very well in times of inflation. Gold last took a parabolic turn in the 70s, when we had two years of double-digit inflation.
John Paulson added that gold can be “parabolic” because it is relatively small compared to the overall financial market. John Paulson commented on the subject:
If you have long-term Treasury bonds with a yield of 2% and interest rates go up to 5%, the monetary value of these bonds decreases. Likewise, if you have cash sitting in a bank where you earn 0%, you are slowly eroding the value of your money with inflation. As inflation rises, people try to get rid of fixed income. They’re trying to get out of cash and the most logical place to go is gold. Because the amount of money trying to come out of cash and fixed income dwarfs the amount of investable goods, the imbalance in supply and demand causes gold to rise and feeds on itself as it rises. This in turn becomes potentially parabolic.
Mark Mobius: I predict the value of gold will increase
Meanwhile, in an interview with Bloomberg, Mark Mobius said that investors should keep 10% of their portfolio in gold. Mark Mobius said he predicts the value of gold will increase as the purchasing power of fiat currencies continues to erode. Mark Mobius commented on the subject:
Given the incredible supply of money being printed, global currency devaluation will be quite significant next year. It would be very, very nice to have physical gold that you can access right away without the danger of the government taking over all the gold.
What levels does Analisdollarser expect in yellow metal fiadollars?
Despite the positive view of the gold market among influential fund managers, the gold market has been caught in a relatively narrow trading range with support at $1,800 and resistance at $1,820. Many commodity analysts noted that gold is struggling to gain attention. As the Federal Reserve plans to cut back on monthly bond purchases by the end of the year, investors are laser-focused on a possible shift in US monetary policy.
For many analysts, Friday’s nonfarm payrolls report will be a major catalyst for gold. Some analystsdollarser say weak jobs growth in August may force the Federal Reserve to delay contraction plans that could send gold prices back to $1,900 an ounce. But at the same time, a stronger-than-expected jobs report could solidify the Federal Reserve’s plan and return gold prices to recent lows, according to analysts.