The message for investors looking for a risk hedge today is Long Gold.
There is no question that risks are out there. Hedge funds, money managers and central banks are all buying up gold at record rates for a reason: risk. And Long Gold is the smart move when all signs point to price increases, albeit without a clear target price.
The price of gold could easily go over $1500 an ounce. What are the drivers? There are many today, but the main ones are the geopolitical risks. Iranian sanctions and the political pressure on President Trump to negotiate with China are the main ones.
Given these risk indicators against what appears to be almost no pullback factors, gold would probably stabilize at $1400. In other words, given the present tenuous geopolitical climate, gold has nowhere to go but up and so the message for the risk-hedge-minded investor is Long Gold.
– SAUL GOLDBERG, PhD