With pundits never shy to throw out a new gold forecast, the precious metal ended last week higher – its first weekly gain in four weeks. Ken Hoffman of Bloomberg Intelligence released a report this month, which shows the current pressure in gold prices is namely driven by the looming rate hike – but those Fed concerns are just masking long-term positives for the metal.
Hoffman sees the cards stacked in the metal’s favor.
Hoffman makes a stunning comment, that, “It will take between 50 and 100 years to double the amount of gold in the world. The U.S. dollar will double in about 6-7 years.”
Gold was on track Friday to post its first positive weekly close in three weeks, many analysts suspect that the correction –which started with a 5% drop at the start of the month — has run its course.
Hoffman says that tailwinds for gold may also be brewing in the mining sector with rising production costs and falling output.
