The precipitous drop of gold prices has been big news lately and this has analysts asking: where does it go from here? Most experts seem to agree that a bounce back is coming, but there doesn’t seem to be a consensus on when it will happen and how far back up it will go.
CNBC contributor Jim Riccards is bullish on gold and attributes the recent drop in gold prices to the Federal Reserve’s tightening of interest rates which is keeping inflation down. He believes that the Fed will have to reverse this policy which will lead to increased inflation which has historically been very good for gold. He predicts this happening within the next couple of months and he makes the bold prediction that gold will eventually rebound to $7,000 per ounce.
CNBC also interviewed Tom McClellan, the editor of the McClellan News Market Report, and he is also bullish on gold. Mr. McClellan, however, is not quite as optimistic as Mr. Riccards. Using technical studies, Mr. McClellan can see gold rising to the $2,800 to $4,400 level. When asked if he can see gold going to $7,000 per ounce, Mr. McClellan said, “maybe later.”
Watch the full video interview with Jim Riccards & Tom McClellan on CNBC here: