n incredible opportunity to buy the dip is happening right now. Gold prices are currently the most attractive they have been for those looking to buy in almost three months, meaning this is the moment to act without delay.
The yellow metal has seen its bull run temporarily halted thanks to better than expected US data. The latest Consumer Confidence Index gives a reading of 127.3, which is higher than that reported in May and above what analysts had expected to see for the month of June. The more positive consumer sentiment caused gold to drop 1.4% in reaction, down to £1,266.36 ($1,754.30) during trading yesterday (Tuesday).
The report noted “…the proportion of consumers planning to purchase homes, automobiles, and major appliances all rose—a sign that consumer spending will continue to support economic growth in the short-term. Vacation intentions also rose, reflecting a continued increase in spending on services.”
The key point of reference here is the use of the phrase ‘short term’ as the U.S. Conference Board also acknowledged that higher inflation is expected. That means spending would likely decline as household budgets come under pressure and consumer sentiment would dip. With most economists warning of higher inflation, the longer term outlook for gold remains bullish.
Buy the dip now to be well placed for gains when the bull run re-ignites.
