Rick Rule, CEO of Sprott U.S. Holdings, and a commodity veteran who has been in the market for over 40 years, thinks a trade war could finally push gold over the $1,400/oz. level, Bloomberg reported this morning.
One of the biggest surprises throughout the last couple months of stock market volatility has been the lack of a serious and consistent bid underneath the spot price of gold. Traditionally, investors will flock to gold as a hedge against the system or hedge against inflation but, even as the VIX has spiked several times over since the beginning of 2018, gold has yet to find a serious inconsistent bid.
Experts in precious metals like Peter Schiff have predicted that $1400/oz for gold will catalyze a breakout. For gold spot, it has certainly been a struggle to gather any momentum on a consistent basis over the last couple of months.
However, Bloomberg published a report early this morning citing Rick Rule, who believes that $1400 per ounce could easily happen if the US is put into a trade war situation that it is increasingly looking like we are getting near: