As second wave hits, look for gold to breach $1,800

Gold last traded at $1,738 an ounce. Silver at $17.55 an ounce.

NEWS SUMMARY: Precious metal prices headed for their biggest weekly gain since April on a growing bearish economic outlook. U.S. stocks attempted to claw back some of the sharp losses from Wall Street's worst day since March.

Wagner/Kitco--"Gold prices could be expected to surpass the $1,800 an ounce mark by third or fourth quarter of this year, with near term signals remaining bullish, this according to Gary Wagner, editor of TheGoldForecast.com. Wagner's comments come as the Federal Reserve announced Wednesday to keep rates near zero until at least 2022, and stocks fall on fears of a second wave of the coronavirus. It is unlikely that economic growth will surprise to the upside anytime soon, forcing the Fed to change their dovish stance, Wagner said....Wagner noted that while an economic recovery is in the opening innings, we have yet to see the full repercussions of quantitative easing. 'Regardless of when they turn that switch, we have not even begun to encompass or feel that economic fallout that will come from the moves made by the Treasury department and the Federal Reserve,' he said. Meanwhile, a second wave of the virus has just been reported to begin sweeping across the U.S., as the overall count of infections has just passed 2 million. 'If there wasn't a second wave, I would be very surprised. I think there almost has to be because of the large masses of people that came together without masks, and without social distancing,' Wagner said, referencing the recent mass demonstrations taking place around the world in response to the death of George Floyd. Gold prices are showing upwards momentum, and this should continue until the end of the year, Wagner said."