David Hunter: I’m Still Bullish on Precious Metals & My Gold Target is $1800

David feels that he is one of the more bullish analysts on the street for gold. Gold reached $1560 this year and is nearly finished a consolidation phase. A further rally could happen soon, and he has raised his targets for gold to $1800 and $26 for silver.

The Fed isn’t desperate, but their latest actions in the Repo market makes the case that their policies were too tight and that interest rates need further easing. They are avoiding calling their actions Quantitative Easing for now. Regardless of what they call it, it has the same effect as Q.E. as their balance sheet is increasing, and liquidity is being injected to support the banking system. This additional money is a net positive for the markets, and this melt-up could continue into next year. We continue into uncharted territory with the Fed’s expanding balance sheet.

David prefers to avoid getting caught up in the present tense of the markets. He likes to get the macro picture with help from fundamental analysis, sentiment indicators, and by closely monitoring what is discounted. It’s better to know in advance where the markets are heading.

Copper has reflected the slow down in both the global economy and housing. He wasn’t surprised that copper has headed lower and is concerned that it could head much lower as he forecasts a global bust next year.

Over the past few months, bonds have had a nice run-up, and he outlines where the ten and thirty-year treasuries may head. Treasuries are going to be the asset to own as people flee to safety.

Time Stamp References:
0:40 – Gold and silver outlook.
2:30 – Fed and the Repo market.
6:10 – Charting and analysis.
8:00 – Weakness in copper and the economy.
9:20 – Bullish on stock markets.
11:35 – Treasuries and Fed rates.

Talking Points From This Week’s Episode
• His gold and silver targets.
• Higher stocks and lower rates.
• The dollar may roll over soon.
• Copper could surprise to the downside.

David is Chief Macro Strategist with Contrarian Macro Advisors. He is an investment professional with 25 years of investment management experience and 18 years as a sell-side strategist with strong expertise in macroeconomic analysis and portfolio management. His strong macro capabilities, combined with a contrarian philosophy, have allowed him to forecast economic cycles and spot market trends well ahead of the consensus. Intellectually honest, independent thinker comfortable with charting a course apart from the crowd. Accomplished stock picker and value-oriented portfolio manager.

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