Gold Soars as US Debt Continues to Rise

Gold prices could soar to $6,000 per ounce as the US debt continues to rise and central banks maintain their gold-buying spree, according to Toronto-based brokerage Maison Placements President John Ing. The current bull market has only just begun, Ing predicts, driven by swelling U.S. federal debt and steady official-sector demand.

Ing's forecast is based on $39 trillion in US federal debt, with about $1 trillion of that being annual interest costs. He believes that gold's recent pullback has not changed his target price of $6,000 per ounce, which he sees as part of a multi-year bull market.

The surge in gold prices would have a significant impact on miners' margins, free cash flow, and acquisition activity, Ing said. Gold producers with near-term growth potential, such as Lundin Gold, are well-positioned to benefit from this trend.