Close up stack of gold bars, financial wealth concepts and businessGold is in a "new bullish phase" after prices notched another record high, said asset management firm Sprott Asset Management, echoing other analysts who have predicted that the bullion will continue to scale new heights.
Spot gold is currently trading at $2,729.14 per ounce, while gold futures are at $2,741.20.
"Rising U.S. debt-to-GDP ratios have historically led to higher gold prices due to concerns over the sustainability of debt, currency devaluation and debt monetization," Wong continued.
As debt increases, governments might resort to printing money to address deficits, which can devalue the currency, Wong explained.
This erosion of trust in fiat currency enhances gold's appeal as a reliable store of value.
Persons:
Paul Wong, Wong
Organizations:
Sprott Asset Management, U.S ., U.S, Congressional