If you’re ready to move and add gold to your portfolio now is the time to do so with a window of opportunity open right now. With the prospects for gold this year so positive, this window could slam shut at any time.
The opportunity comes thanks to better-than-expected service sector data. The latest Institute for Supply Management (ISM) figures show that January’s momentum was better than had been forecast, with a 59.9% reading. While this was a decline on December’s 62.0% reading, analysts were expecting to see a reading around 59.5%. The figures show that New Orders and Business Activity both dipped in January.
The ISM Services Business Survey Committee chairman Anthony Nieves said that there had been a contraction, but the overall outlook was better, noting “The composite index indicated growth for the 20th consecutive month after a two-month contraction in April and May 2020. Although there was a pullback for most of the subindexes in January, the rate of growth remains strong for the services sector.”
However, Nieves said that high inflation remains a concern, and there could be further upset next month “Respondents continue to be impacted by coronavirus pandemic-related supply chain issues, including capacity constraints, demand-pull inflation, logistical challenges and labour shortages. Moreover, the COVID-19 omicron variant has disrupted operations, especially through reduced staffing levels.”
Gold, while continuing to climb back after some decline last week as a result of sell offs, was down 1% to £1,320 ($1,790) in trading yesterday (Thursday) on the back of this data. This creates a window to buy for those ready to move.
