After pushing higher, the Dow is set to open down 255 points. The NASDAQ is set to open down 32, with the S&P 500 setting up for a decline of 25. “There are a lot of unknowns that we are dealing with despite the fact that normalizations of economic activities are still on track,” said Value Partners manager Frank Tsui, as quoted by Zero Hedge.
While most stocks are likely to flop at the open, gold should continue to push higher.
All as investors bet global central banks won’t tap the breaks on much-needed economic stimulus. In fact, “The global economic recovery will still require further aid and gold prices should still be supported over the medium-term,” wrote Edward Moya, senior market analyst at brokerage Oanda, as quoted by MarketWatch.
In addition, in a world of zero interest rates, the price of gold could rally as high as $3,000, says Bank of America. “As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. And investors will aim for gold,” the analysts said, as quoted by Kitco.
One of the best gold stocks to consider is Barrick Gold (GOLD), which recently bottomed at around $22 and could test a high of $28, near-term.
