Don’t let today’s unmissable opportunity to buy the dip fool you; a new all-time price high is imminent. Canadian bank TD says we are looking at the tail end of the selloff, with gold prices about to go stratospheric.
Senior commodity strategist Daniel Ghali indicates the bank is expecting to see prices hit £1,731 ($2,150) in the very near future. “[we are] anticipating imminent selling exhaustion in precious metals and rising discretionary interest to support the yellow metal towards new all-time highs,” he explained.
“Our positioning analytics argue that selling exhaustion in precious metals could be imminent, barring margin calls associated with a debt-ceiling catastrophe…dry-powder analysis highlights that position sizing for gold bulls remains near average levels, which points to less pain associated with the recent pullback.
“Discretionary traders may play a large role in helping gold prices firm, given we expect markets to price in a deeper cutting cycle over the next 12 months,” he added. “We expect gold to print new cycle highs over the coming months.”
The bank expects the gold bulls to hit its target of £1,731 ($2,150) before the end of this year. Couple this with the window of opportunity to buy that’s open right now and the course of action is clear: buy now.
