Trading was nothing but good news for the gold bulls yesterday (Tuesday) with the precious metal surging as bank regulators were grilled about the reasons behind the unforeseen failures of Silicon Valley Bank and Signature Bank.
With gold hovering around the £1,618 ($2,000) mark all week and poised to move past that ceiling in decisive fashion, industry experts say gold is gearing up for a huge boost of positive sentiment.
OANDA senior market analyst Craig Erlam said the investigation into the banks’ collapse could mean that further shockwaves could hit the banking sector He noted, “[It] suggests … that investors either don’t think the mini-banking crisis is behind us or, perhaps more likely, that scarring from it in credit markets has permanently reduced the tightening required from central banks. That could be bullish, if so, for gold and traders may even have one eye on the all-time highs if rate cuts this year become a reality.”
Don’t delay. Buy now.
