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Gold Prices To Hit Records Highs Within Two Years – CPM’s Jeff Christian

(Kitco News) - As gold retreated below its key psychological level of $1,300 in after-hours trading Monday, one precious metals expert remained optimistic, saying that the metal could hit new all-time highs by 2020.

“By 2020–2022 we would see record high gold prices in terms of nominal annual average prices,” the managing director of CPM Group Jeff Christian said in an interview with Macro Voices. “For the annual average price to be $1,650 or $1,700, that means that you're going to have gold prices knocking on the door of $2,000.”

In the short-term, Christian said good things are in store for the yellow metal, with prices going as high as $1,360 an ounce.

“Over the next few months the price is probably going to move back up toward $1,340 to $1,360 – into late November and December,” Christian said. “Then getting into 2018, depending on what happens in the global financial markets, we think that the gold price will probably continue to rise at perhaps a slightly faster rate than it has risen in the last couple of years.”

As Asian markets opened, spot gold on Kitco.com was last seen trading at $1,293.50, down 0.08% on the day. 

Christian is not as excited about silver, adding that his outlook for the white metal has a “firm ceiling” at around $19 over the next several months.

“We're looking for silver to move sideways,” he said. "Silver is a financial asset, to some extent, like gold. But it's much more of an industrial metal and an industrial commodity . . . One of the things that you see is that investment demand really drives prices higher or lower, and investors are much more focused on gold right now, it seems, than they are on silver.”

In terms of future drivers for the metals, the search for a new Federal Reserve Chair should not have much of an impact, according to the expert.

“Concerns over who comes in at the Fed will ruffle the markets, and you'll see the usual little volatilities as people jockey, but that's largely meaningless to the bigger issue, which is that the Fed probably will continue to suffer from a diminution of respect on a global basis,” Christian said.

This distrust of what the Fed is doing to the U.S. economy could translate into higher gold prices, he explained. “Part of our view of gold prices rising over the next five years is predicated on the view that there's going to be concerns about the future of monetary management in the United States and on a global basis.”

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