QE3 will push Gold price to USD2,000 per ounce

The gold price touched a new all-time high of $1910 per ounce early Tuesday! The price of gold rallied alongside the broader stock and commodity markets as expectations of a fresh round of quantitative easing made the rounds on trading desks across Wall Street. WTI crude oil gained 1% to $83.10 per barrel, boosted by weakness in the U.S. dollar. Silver futures rallied 1.4% to $43.00 per ounce.

Bill Fleckenstein – another well-respected investor who has been bullish on the gold price for many years – echoed Faber’s comments on Friday. Writing on Minyanville.com, Fleckenstein said that the combination of deteriorating economic conditions in the U.S. and Europe “have to weigh heavily on Ben Bernanke’s mind…the pressure to fire up the printing presses must be intense, for both Bernanke and Trichet.”

Flecksenstein went on to say that “If the current rout in the world’s bank stocks and stock markets continue, and I don’t see any reason why it won’t, I would expect a round of massive, coordinated QE on the part of the world’s central banks sometime soon – as in perhaps by Tuesday morning.” QE3 will push Gold price to USD2,000 per ounce.