The gold price suffered a significant setback on Tuesday – but is currently recovering from the significant losses. If Jan van Eck, CEO of the van Eck fund and ETF provider of the same name, has its way, then this setback is only of a temporary nature. He sees the gold price continue to rise significantly and has a price target of $ 3,400 for the yellow metal. The idea behind his price target: He assumes that the deflationary market environment will force the central banks to provide further stimuli. In addition, the systemic risks will remain, creating an ideal environment for gold.
That has already been shown in the past
“We became really bullish for gold when the precious metal broke out of a six-year sideways market last summer,” says van Eck. The next confirmation came when gold hit a new all-time high. Since gold is now clearly in a bull market, which is being supported by negative interest rates, minor corrections are no longer dramatic. “The gold bull market will only end when interest rates rise,” says van Eck. “The Fed says, we don’t even think about raising rates. So we think it’s going to be a very long cycle. But you should know the risk. “