Rock stars: Look to gold miners in the next stage of the bull market

Bull market set to resume going into 2021

The inability of US fiscal authorities to agree on additional relief measures ahead of the November US elections, and the hesitance on the part of the Federal Reserve to fill the policy gap that has emerged to support the recovery, has resulted in a correction in the gold bull market that began with the end of the Fed's last rate hiking cycle in late-2018.

However, once the election season passes, we expect that US fiscal resolve combined with the resumption of Fed support via bond buying should provide the next tailwind to the gold bull market. While in the near term, volatility may persist especially entering the uncertain US election season, we continue to expect to see gold reaching $2,200 per ounce by December 2021 as the US strategy of deeply negative inflation adjusted interest rates more formally takes hold in the new year. Fundamentals add near- and medium-term drivers to miners During this transition, investors looking to bu...