News, Rumors and Opinions Monday PM 8-10-2020
TNT:
Harambe: CNBC: The gold rally could forge ahead to $4,000, but two events could turn its fortunes (8/10/20)
Gold prices could forge ahead to $4,000 per ounce in the next three years, but factors such as the development of a coronavirus vaccine and the November U.S. elections could change the fortunes of the precious metal, analysts say.
This year, gold prices have shot to record highs not seen since September 2011. Investors have been fleeing to “safe haven” assets as the pandemic shows no signs of abating. Last week, gold prices surged above $2,000 per ounce for the first time.
“It’s quite easy to see gold going to $4,000,” Frank Holmes, CEO at investment firm U.S. Global Investors, told CNBC on Monday.
He pointed to the trillions of dollars needed in stimulus to tide the U.S. economy during the coronavirus pandemic, and added that G-20 finance ministers and central banks are “working together like a cartel and they’re all printing trillions of dollars.”
“We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class,” Holmes said.
A looser monetary policy generally means investors are more likely to seek out gold as an asset. When real yields go down, gold prices will go up, and vice versa. In such a scenario, the opportunity cost of holding gold, a non-yielding asset, is lower as investors are not foregoing interest that would be otherwise earned in yielding assets.
Spot gold prices were last at $2,028.32.
While Yung-yu Ma, chief investment strategist at BMO Wealth Management — U.S., agreed that there are many factors supporting gold, he pointed to two big events that could change the direction of prices.
“We’re just cautious extrapolating these current factors ... especially when we know there are two big events on the horizon that could change that trajectory. One is of course the vaccine development, and the other is the elections,” he told CNBC on Monday. “We think ... especially the vaccine has potential to shift some of those positive factors that are working right now in the favor of gold,” he said.
Depending on how the U.S. elections go, analysts have said that gold prices could react accordingly.
According to New York-based research provider Third Bridge Group, gold prices could fall to below the $1,600 mark after the elections, before rallying again next year.
However, in a note last week, financial data provider Refinitiv pointed to U.S. political developments that could disrupt financial markets and support the gold rally.
https://www.cnbc.com/2020/08/10/gold-prices-amid-coronavirus-pandemic-and-us-elections.html
Courtesy of Dinar Guru
Pimpy Article: "Deputy: The economic file will be part of Al-Kazemi's visit to the White House" Good. Because I know what you're thinking. Why don't they just go ahead and change the rate? I'm sure that'll be a pretty big boost don't you think? I surely do. Quote: '...the economic file will be part of the files that the Prime Minister Al-Kazemi will discuss during his visit to the White House next week.' ...I'm sure one of the things that Al-Kazemi is going to be saying to him is 'look we need to do infrastructure . We don't have scabbily right now. We're going to be starting from square one and we need some kind of help. A big help for us would be for you to once again recognize our sovereignty and then please remove the restrictions off our currency and let us reinstate our rate so that we can start importing all the supplies we need to do infrastructure.' Man I am so waiting for that announcement...
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KTFA:
Samson: Analysts: Gold is heading towards $ 4000, but two events may change this course
10th August, 2020
Gold prices have witnessed a remarkable growth in the recent period, as they recorded historical levels, amid analysts' expectations that the precious metal prices will continue to rise in the coming period.
Frank Holmes, chief executive of the US investment company, US Global Investors, told CNBC that it is "very easy to see gold reaching $ 4000 (per inch) with trillions of dollars being pumped into stimulating the economy." He added that the G20 finance ministers and central banks around the world "work together like a cartel, all of whom are pumping trillions of dollars in." He pointed out that "when you print money of this size at zero interest rates, gold becomes a very attractive asset class."
One of them is the possibility of developing a vaccine against Corona, which will stimulate risky investments and lead to a decline in investment in gold. The second is the US elections, where the analyst points out that how the US elections will proceed will affect gold prices, for example, after Donald Trump won the 2016 presidential election, gold prices rose by about 5%.
According to the New York-based American think tank, gold prices may drop below $ 1,600 an ounce after the election, before rising again next year. Meanwhile, a provider of financial data, Refinitiv, says that US political developments could disrupt financial markets and support the rise in gold prices. LINK
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Samson: After the disaster of Beirut Port ... the Lebanese government submits its resignation
10th August, 2020
Lebanese media reported, on Monday, that the Lebanese government headed by Hassan Diab had resigned, days after the catastrophic explosion in the Beirut port. The Deputy Prime Minister and Minister of Defense, Zeina Aker, announced her resignation from the government.
In her intervention during the cabinet session, she said: “The occurrence of this disaster requires the resignation of a government, not individual ministers. Governance is a responsibility, revolution is a responsibility, citizenship is a responsibility, the judiciary is a responsibility, the media is a responsibility, and resignation is a responsibility.”
The massive explosion, which occurred in a warehouse in the Beirut port, caused great damage to buildings and properties. At least 160 people were killed in the explosion and about 5,000 others were injured. LINK
Currency365:
Kadhimi Announces Campaign To Rebuild Baghdad, Iraq
Aug 10, 2020