Nitesh Shah from Nasdaq-listed ETF specialist WisdomTree Investments believes gold can breach the US$2,000 per ounce high watermark given the scale of stimulus measures being introduced to combat the economic consequences of coronavirus.
The expansion of central bank balance sheets will lead to immense inflationary pressures, he says, which usually supports gold.
Putting in the current variables into WisdomTree’s model for the metal ends up with a price above US$2,000, he adds.
Silver, too, might be in for a rally as its value relative to gold has hit an all-time low.
If gold does go higher in future, silver might become a leveraged play on its more expensive neighbour.