After setting new highs by breaking $2,000 per ounce the previous week, gold prices retraced, closing at $1,949.80 per ounce last week (see the following chart). Gold is now in a well-established bull market, and various factors indicate that this trend will hold for the foreseeable future. The current political turmoil in the U.S. and the upcoming presidential election make gold’s “safe haven” feature attractive. In addition, the massive bailouts that central banks continue to implement to combat the economic downturn due to the coronavirus will keep interest rates flat to negative until things fully recover. VanEck Associates CEO Jan van Eck sees gold reaching $3,400 per ounce, telling CNBC , “I’m oversimplifying here, but gold competes against interest rates. … If interest rates are high, gold, which pays basically no interest rate, becomes less attractive. As interest rates vector towards zero, which they are now, then gold’s relative appeal grows. It’s really that straightforward.” CNBC adds, “With gold ‘clearly in a bull market,’ negative real interest rates should only help that along, minor corrections notwithstanding, the CEO said.” Rick Andrews is president of Avant Capital Management.