Gold may reach a record by year end as investor need creates 'more demand than the market can handle

Gold last traded at $1,706 an ounce. Silver at $17.61 an ounce.

NEWS SUMMARY: Precious metal prices eased Monday on profit-taking despite a weaker dollar. U.S. stocks rose sharply as markets cheered signs of economies reopening and a potential new coronavirus vaccine.

MARKETWATCH---"Gold prices could reach a record by year end, but don't expect to see a smooth ride to the top, even as measures to offset the pandemic-hit economy support the precious metal's appeal as a haven....The most significant supportive factor for gold is the 'amount of debt being created to fund the various global monetary and fiscal deficits,' says Peter Grosskopf, chief executive officer at Sprott Inc. Against that backdrop, gold is experiencing a broad rally, with 'participants ranging from state funds to pensions to [high-net-worth] clients to hedge funds.....'More investors need to add gold as a protection asset in their portfolios,' Grosskopf says. That will 'create more demand than the market can handle,' he says, and with the increasing amounts of monetary accommodation and fiscal deficits, gold could move through its past highs - to $1,900 or $2,000 - by the end of 2020. He refers to gold as a chameleon, as well as an 'anti-confidence thermometer' that 'attaches itself to themes and...does equally well during periods of extreme deflation and inflation.'"