Summary of Kitco News' Weekly Update:
Gold futures hit new record highs of $1,974.90 an ounce this week after breaching the 2011 high of $1,920 an ounce. Analysts remain very bullish on gold, saying that $2,000 an ounce price tag is just around the corner.
Silver also had a stellar week, rising to $26.275 an ounce and hitting seven-year highs.
Some price pullbacks are not being ruled out but any major drops are expected to be bought.
Here’s where Kitco’s senior analyst Jim Wyckoff sees gold heading later this year: Sept. 1: $1,915.00 (normal downside correction in an uptrend projected); Nov. 1: $2,085.00; Jan. 1: $2,257.00
The main drivers for gold this week have been weaker U.S. dollar and currency debasement fears in light of all the money printing happening across the world.
Goldman Sachs even issued a warning this week, stating that the U.S. dollar is in danger of losing its status as the world’s reserve currency. “Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows,” Goldman said.
