Fidelity values gold at 5000 USD per ounce: liquidity replaces interest rates

Jurrien Timmer, global macro director at Fidelity Investments, argues that the fair value of gold is now 5000 USD per ounce. According to his "Gold & Liquidity" model, the precious metal has shifted from a valuation based on real interest rates to one based on global financial liquidity. The current market price of gold remains significantly below the level indicated by this model.