Gold prices will reach a record £1,896 this year according to new expert insight.
The latest analysis, by MarketGauge education and research director, Michele Schneider pinpoints the second half of the year as being particularly bullish, with gold prices expected to sharply rise from June.
Schneider agrees with a raft of other analysts, who will say that Federal Reserve rate cuts will be the trigger than unleashes an unstoppable wave of bullish sentiment. It’s this wave that will carry gold to places it’s never been before, with £1,896 ($2,400) just the tip of the iceberg when it comes to longer term price goals.
The second half of the year is when we’re most likely t o see recessionary factors at play, which could mean the economy stutters. That, in addition to supporting rate cuts which favour gold, would also be supportive for the yellow metal, with gold historically performing well in periods of economic depression.
Schneider says that the much talked about soft landing is far from a certainty and that it would be foolish to think a hard landing (a recession) is off the table.
She said, “I can’t say that we are definitely going to see a hard landing, but at the same time, I can’t completely rule out that scenario. If conditions do breakdown, I think the Fed would rather err on the side of keeping the economy moving than rising prices, and this is when you need to have that price hedge like gold.”
Schneider goes on to say that, “Generally, I think it’s better to prepare for a hard landing than to assume a soft landing.” This is key for gold investors who need to take action now to buy before prices increase exponentially. Don’t delay.
