Gold is destined for another increase, according to the head of metals trading at Deutsche Bank. In fact, it’s set to jump above $2,000 as governments use stimulus to counter any slowing in economic recovery.
Bloomberg reported Wednesday that Raymond Key, Deutsche Bank’s London-based global head of metals trading, said he believes continued stimulus funding will drive the price of gold higher even than its last peak in 2011.
“We’ll take out $2,000, we’ll go higher,” Key said in the report. He was in Hong Kong attending the annual conference of the London Bullion Market Association when he went on record predicting the metal’s rise, adding, “That’s on the view that they’ll continue to print money.”
Already gold is looking to record a 12th annual increase in price on the belief that governments will continue to provide stimulus funds as they seek to boost recovery efforts from the worldwide recession. Such a move, investors believe, will cause currencies to lose value and spur inflation. On that belief, they are placing their faith in gold, with gold-backed ETFs growing to their largest size ever in the week just past.
Key is not the only expert who foresees higher dollar signs for the precious metal. Jeremy East, global head of metals trading and structured inventory product at Standard Chartered, was quoted saying in a Nov. 12 interview, “Gold out of all the metals will be the best performer. The biggest driver of gold will be the ETF.”