Gold prices are ‘very cheap’ right now with the precious metal undervalued by quite a way according to one industry expert. It is currently trading around £1,473 ($1,839).
Huw Roberts, who is the head of analytics for quantitative analytical framework, Quant Insight says gold prices right now can only be described as a real bargain given the currency geopolitical and macroeconomic backdrop.
When considered in light of economic factors such as the persistent level of inflation, overall financial conditions and market growth, gold is clearly undervalued, creating a compelling reason to buy now according to the quantitative data analysis.
“We run any asset, whether an equity, a bond, or a commodity. And we train the price action of that asset on those macro factors. And then it’s all down to the algorithms. There’s no discretion whatsoever. This is where we differ from the majority of the research world — our view is 100% systematic,” Roberts explained. “We have gold as cheap on our models, anywhere between 5% to 7% undervalued, depending on which time horizon you’re looking at.”
Quant Insight says gold has strong safe haven appeal with Roberts adding, “Credit spreads are a big driver for gold at the moment. And if we get risk-off, higher VIX, and wider credit spreads, that’s good for gold. Gold is trading like a safe haven play for us at the moment. We do have signs of inflation being a positive driver as well. But it is the safe-haven hedge that is dominating right now.”
This analysis creates a credible, compelling reason to act swiftly to bring gold into your portfolio. Don’t delay and miss this opportunity.