Gold Forecast: Coronavirus Could Send Gold Price Soaring above $1700

The comments below are an edited and abridged synopsis of an article by AG Thorson

The coronavirus was declared a global emergency when the number infected surpassed that of the 2003 SARS outbreak. With the death toll doubling every three days or so, the outlook is grim.

Gold Forecast: Coronavirus Could Send Gold Price Soaring above $1700 | BullionBuzz
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For a few weeks now, Thorson has been advising that the January pullback in gold was nothing more than a mid-cycle consolidation; that once it was over, prices would continue their advance into March. He didn’t know what would trigger the cycle response. Now, however, it looks like the coronavirus will send gold to the $1,700+ target.

The contagion has grown to 24,324, with 490 deaths. There’s no doubt there will be an economic effect; how great is impossible to say.

The SARS epidemic lasted over six months, and this seems much broader. If things continue to escalate, there’s speculation that the 2020 Olympics, set to begin in July, may have to be postponed.

Expect increased volatility in the coming weeks. If gold shoots past $1,650, then there is a good chance we see $1,780 to $1,800 in March.

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