$4,000 gold price target?

Jerome Powell’s hawkishness created doubts in gold investors’ minds, sending the yellow metal to trade sideways for the last few days.

Volatility for gold presents an opportunity to buy on the dips, said Frank Holmes, CEO of U.S. Global Investors who said that “if you’re not long, you’re wrong.”

Holmes has previously called for gold to hit $4,000 an ounce in two to three years’ time. His long-term forecast is based on applying gold’s performance during the last time the Fed expanded its balance sheet between 2009 to 2011.

“He has got to show that he’s a bit of a hawk going into that symposium because the dollar is on a slide, that was just his protocol. It’s just sentiment news, ignore that. Just really take a look at how much money is being printed by the EU, and Japan, and here, and in China, it’s just breathtaking,” Holmes said.

Holmes is bullish on stock markets as well as gold, and in particular, sees major improvements ahead in the airline industry.

“The airline industry is highly correlated to GDP per capita and GDP as a whole. We have to get business people to be flying more often, that’s what the government’s policies are. We have to make it safer for them,” he said.

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