If you’ve caught our weekly Bulletins over the last month or so, you’ll know that the consensus on Wall Street is that a recession is likely to hit towards the end of this year.
You’ll also know that the outlook for gold prices has revised upwards because of this expected economic upheaval and ongoing concerns around inflation, the war in Ukraine, a winter Covid-19 surge and supply chain disruptions.
With expectations that gold will surpass its record high by some way over the course of the next couple of months (Goldman Sach’s analysts forecast gold prices of £2,061 ($2,500) by December) today’s enormous buying opportunity is one that few will want to miss.
A spike in the strength of the US Dollar has seen the price of gold dip, with the precious metal trading at £1,479 ($1,766) yesterday (Tuesday) by virtue of the U.S Dollar Index hitting a two-decade high. The temporary dollar strength comes as markets look to the minutes from the June FOMC meeting to get some sense of how much more aggressive the Federal Reserve’s rate increase policy will get.
However, this window of opportunity could slam shut as soon as this Friday, when a new employment report is due to be issued. Should the jobs report miss the mark, the US dollar would be expected to plunge, and gold resume its true path to unprecedented pricing levels. Don’t miss out on this opportunity to buy the dip and put yourself in a very advantageous position when normal US dollar and gold price action resumes.
