While gold is universally agreed to be on course for a record year with all-new price highs all but assured, there is a window to buy opening right now for those prepared to move quickly.
Australia and New Zealand Banking Group (ANZ) analysts say that a short-term opportunity is presenting itself, thanks to an expected hawkish Federal Reserve action. They believe that the Feds will continue to increase rates over the next couple of months in order to tamper down on inflation as the job market continues to surprise with its resilience. This means that the runaway gold prices we have become used to seeing this year has temporarily converted into a window to buy.
The bank’s lead analysts say, “We expect gold to experience short-term volatility as the market’s rates expectations diverge from the Fed’s outlook. Unemployment is historically low, and inflation is persisting above the Fed’s target range. This could keep the Fed hawkish.”
It’s important that you do act fast if you want to take advantage of this price opportunity however, as the bank also foresees a continual decline for the U.S. dollar, freeing up the gold bulls to generate unstoppable pricing momentum later in the year.
“Even though the Fed’s monetary policy will be a key driver for the USD, the greenback will also be influenced by the outperformance of Europe and other regions against the U.S. and narrowing rate differentials. So, the USD is likely to remain on a downward trajectory for the rest of the year,” they explained. “The ‘fear factors’ driving haven flows into the USD last year have also diminished. This makes us believe that a structural decline in the greenback is on the cards, which will support gold.”
Don’t wait for prices to surge. Take this opportunity to buy now.
