The gold value handed US$2,000 per ounce twice final week — the place will it go subsequent?

David Morgan, writer of the Morgan Report, shared his ideas on what’s subsequent for the yellow steel, telling the Investing Information Community that the disaster within the banking sector is motivating folks to get off the sidelines and shield themselves.

“I believe that issues all the time push folks to do one thing that they won’t have completed in any other case, and we’re at that time,” he mentioned. “I’ve all the time talked concerning the run to gold and all that — and I’ve mentioned pretty typically that there’s a tipping level, a set off of some kind that often propels folks which might be educated, who’ve studied it … however they’ve by no means taken motion.”

What does that imply for the gold value? Morgan believes if the valuable steel hits a brand new excessive it might go on a run.

“When you get into the brand new excessive, we’ll name it US$2,060, then the algorithms kick in. The algorithms know that the momentum play is everytime you make a brand new excessive there is not any upward resistance. So even slightly bit of shopping for will drive it greater. And if you get one other new excessive, then everybody says, ‘Oh, gold’s on a run. How far will it go?’ And there is not any promoting — I am exaggerating barely, however there’s not that a lot promoting. And so then slightly bit extra shopping for or lots of shopping for will take it even greater,” he mentioned.

Successive new highs can result in parabolic actions, particularly given the banking points at present at play. Due to these issues, Morgan expects the run to gold to speed up as various teams of individuals make purchases.

“It should feed on itself. There’s an previous adage that claims there is not any fever like gold fever. That happened for a purpose.”

Silver is understood to lag gold, however Morgan mentioned the white steel’s prospects will enhance if folks cannot get gold or cannot afford it. He additionally mentioned that whereas he believes it is vital to personal bodily gold and silver, the very best leverage continues to be in mining shares.

Watch the interview above for extra from Morgan on gold, silver and the general market.

Don’t overlook to comply with us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the knowledge reported within the interviews it conducts. The opinions expressed in these interviews don’t replicate the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.