Kitco News, Released on 3/9/20
The Federal Reserve’s inter-meeting emergency 50-basis-point interest rate cut last week was a panic move and will continue to support gold prices, said Adrian Day, CEO of Adrian Day Asset Management.
“You can’t fight a virus with a rate cut,” Day told Kitco News, on the sideline of PDAC 2020, the world’s largest mining conference. “I think the Fed has completely boxed themselves into a corner by keeping rates too low for too long. And now it has no impact.”
In the current environment with massive volatility, Day said that all investors should make gold their base in a portfolio as an insurance policy. He added that because of central bank easing and more fiscal spending, he sees gold prices trading between $1,700 and $1,750 by the end of the year.