By Myra P. Saefong
MarketWatch.com, New York
Friday, June 24, 2016
Gold's impressive rally Friday offered a taste of what may be in store for
the precious metal, as some analysts say it's just a matter of time before
prices top $1,500 or even $1,900 an ounce. ...
But expectations for more rallies in gold aren't just borne from the
Brexit news. What happens in other markets, including equities and
currencies, will impact gold's outlook more directly.
Brexit is "a global monetary event, with destructive effects in
individual economies," said Brien Lundin, editor of Gold Newsletter.
"The standard central-bank prescription is to ease, to depreciate
their currency," he said. "But if everyone is trying to depreciate
their currency, including the U.S., what can they depreciate it
against?"
"Only gold will stand tall during the turmoil. And over the long
term, it won't because it's supposed to be a 'safe haven,' but because it's
the only safeguard against fiat currency depreciation," said Lundin. ...
There is "no reason" for gold to rise on such as event as Brexit
itself, said Lundin. Such "geopolitical flashpoints" are short
lived." Instead, sustained gains for gold are "based upon currency
debasement almost exclusively," he said. ...
... For the remainder of the report:
http://www.marketwatch.com/story/why-gold-may...ars-endand-i...
