Gold has further to go for the following three reasons. The primary reason for more gold upside is that there is more stimulus to come from around the world. The EU recovery fund was agreed yesterday and this puts pressure on the UK to add further stimulus to their economy as Brexit looms. Furthermore, the increase in COVID-19 cases globally, especially in the US, means that the Fed is likely to ease more which will suit gold upside. So, here are three reasons to support gold’s upside:
- Fed officials have warned that the US outlook is getting worse and easing is the answer. Chicago Fed Chief said, ‘i’m worried about the downside risks and I think that’s how policy needs to be positioned’. John Williams and Raphael Bostic also gave additional signals.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe which produced 54,512 ounces of gold in 2018 at an All in Sustaining Cost of $802/oz.
