Gold prices have been in a brief holding pattern this week as we await the release of key U.S. economic data but don’t let this pause fool you – the overall trend is up, so says one analyst (and most experts agree).
Ned Davis Research’s chief global investment strategist Tim Hayes says that nine of the 16 total indicators he reviews are emitting bullish signals, indicating that the move higher will continue. Hayes believes gold is in a holding pattern, as we wait to see what the Federal Reserve will do next. There is an 80% market expectation that one final rate hike will take place next week.
Hayes said, “If we see continuing signs of the economy slowing, and the bond market continues to anticipate that the Federal is going to hold interest rates, then yields are going come down.” When that happens, expect the gold bulls to surge.
Gold prices are currently trading around the £1,603 ($2,000) mark. Buy now before that ceiling gets exponentially higher.