The pandemic has created a perfect situation set of conditions for gold prices to rise, Gordon Pape writes. At the start of the outbreak, I recommended that all portfolios hold 5 to 10 per cent of their assets in gold, and continue to maintain that advice. Gold recently moved through the US$2,000 level, then retreated amid a rise in U.S. bond yields.
Given the historic volatility of gold, any price target is a guesstimate at best. We could easily see a short-term pullback as profit-taking sets in. But the long-term fundamentals suggest gold is going to trend higher over the next few years. , including low interest rates, massive government stimulus and inflation risk. If you don’t have some gold stocks or funds in your portfolio, it’s time to act.Story continues below advertisement
Related: Barrick Gold raised its quarterly dividend this week by a penny to 8 cents a share. Read about the company and its second-quarter results
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