$SPDR Gold Shares(GLD)$ Has performed very well and perhaps the most resilient over the past week when all other risk assets were sold off. It has exceeded my previous target and I believe will challenge $3400 in the spot market in the near term.
The medium and long-term prospects are fantastic, because of de-dollsrisation, which has accelerated as a result of last week’s turmoil. Make no mistake. The world is not going back to what we are used to. You will see sovereign nations start and continue purchasing large quantities of gold and increasingly silver in their treasuries.
Gold has hit ATH over last few months and will look to target 2900 with several interesting drivers: 1. BRICS meeting end of Oct that will discuss new monetary unit, comprising up to 40% gold. 2. FED rate cut of at least 25bps , cementing the easing cycle continuing - all good for commodities, especially precious metals. 3. US elections uncertainty and support for economy boosted by liquidity injections. I am Long ETF miners and GLD/SLV in anticipation of the strong moves over the next couple of weeks.