Gold prices are hovering around the $2,020 mark on Monday and remain on a tightrope due to global macroeconomic factors. The US dollar strengthening indicates there’s trouble brewing for gold and oil prices along with the broader commodity markets. Crude oil and Brent dipped this month in February and the price slump is also reflected in the gold prices. Another leg down could send gold prices below the $2,000 mark and ring alarm bells for the precious metal.
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The US dollar is strengthening and is now at 104.22 after steadily climbing from a low of 101.80 this year. A stronger US dollar will dim the lights for gold and the commodity markets making their prices head south. In this article, we will highlight a worst-case scenario price prediction for gold forecasted by a financial analyst.
Gold Prices Could Crash To As Low As $1,200, Claims Analyst
Robert Kiyosaki, the leading financial analyst and author of the best-selling self-help book ‘Rich Dad Poor Dad’ predicts that gold prices could crash to the $1,200 level. Kiyosaki said that he expects Bitcoin to rally at a time when the US economy begins to enter a recession. A market slump in equity, commodity, and gold will make Bitcoin reach the $100,000 mark, he estimated.
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“Andy Schectman asks a very important question. ‘Who is going to buy US Bonds?’ Banks are buying gold, not US debt,” he said. The author added, “How will America run without money? Gold is going to crash possibly below $1200,” he tweeted.
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The analyst also stressed that silver and Bitcoin could outperform gold this year in terms of yields. “Silver will take off as will Bitcoin,” he predicted. The leading author had previously predicted that the US stock market could face the “biggest crash in history”.
He cited that the crash could be much worse than the 2008 financial crisis. Read here to know why Kiyosaki thinks the US stock market will experience a near collapse.