Gold prices climbed to a three-week high of over $1,200 an ounce Friday, reacting to news of China cutting benchmark interest rates to help stimulate economic growth. Making more than a six percent gain this month on increasing physical demand and signs of nations adding to their reserves, some are convinced that gold has hit its bottom.
Peter Boockvar, Chief Economic Analyst at The Lindsey Group, is one market guru who just called gold’s recent dips a bottom for gold.
He stands behind gold as a true form of currency:
“Bottom line, gold is money and is not just a contra dollar play, it is a contra fiat currency asset in a world where fiat currencies are being created to an extent the world has never seen.”
Read more about gold’s positive gains and Peter Boockvar’s views in these top stories:
Calling a Bottom for Gold, Barron’s