Kerr Mines Inc (KER)

[goldenpolarbear]

« ...GOLD price may top US $1,300 in 2019 as investors seek sanctuary from the deteriorating trade ... »

« ....Gold is set to surge over the next year as concerns deepen about the widening US budget deficit and a tariff-driven trade war starts to damage the country’s economy, according to Bank of America Merrill Lynch.

Bullion could average US$1,350 an ounce in 2019 as corporate tax reforms worsen the US fiscal balance, Francisco Blanch, head of global commodities and derivatives research, said in a phone interview last week. Spot gold traded at US$1,208.70 on Friday and has averaged US$1,285 this year.

“We’re still pretty constructive longer term on gold,” because of worries over the future of the US economy even though it’s performing relatively well right now, said New York-based Blanch. “In the short-run, the effects of strong dollar, higher rates dominate. But in the long run, a huge US government budget deficit is pretty positive for gold,” he said.

The warning over the budget echoes billionaire hedge fund manager Ray Dalio, who predicted this month that the US economy is about two years from a downturn, which will see the dollar plunge as the government prints money to fund a swelling deficit.

Goldman Sachs has also joined the chorus of bulls, seeing gold at US$1,325 in 12 months. Bullion has been building a base around US$1,200, after five months of losses, the worst run since 2013.

The Congressional Budget Office has predicted the US administration’s tax cuts, when combined with new federal spending, will push the budget deficit to US$1 trillion in 2020. That’s forced the US Treasury to lift note and bond sales to levels last seen in the aftermath of the recession that ended in 2009.

https://www.scmp.com/business/commodities/article/2165446/gold-price-may-top-us1300-2019-investors-seek-sanctuary

https://www.bloomberg.com/news/articles/2018-09-24/trump-imposes-next-batch-of-china-tariffs-as-trade-war-escalates?utm_source=google&utm_medium=bd&cmpId=google

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