Gold is undervalued right now, says a leading analyst, meaning now is the optimal time to capitalise on lower price levels.
Quant Insight says it’s clear that gold should be higher right now. However, it’s important not to be complacent and expect those favourable rates to stick around indefinitely as there are signs of bullish momentum growing.
Analyst Huw Roberts says that gold should technically be trading around £1,514 ($1,760). That means current prices of £1,469 ($1,707) are around 2% below what investors should expect to pay for the yellow metal.
Roberts is positive that the bulls will take back control in the longer term. He said, “You can’t argue that throughout 2022 the Federal Reserve has been consistent that inflation has become their number one priority and the combat inflation they need to tighten financial conditions.
“Gold investors got excited about a dovish pivot, and those expectations haven’t gone away; they have just been pushed back to the second half of 2023.”
Quant Insight believes that the economic signs all point to an upcoming recession – and that’s good for gold. Roberts added, “It’s almost as if in the last month, a perfect picture of gold has emerged. It is acting as an inflation hedge and a risk-off hedge. If you are looking for a safe haven, what are you going to buy? You can’t buy treasures because of inflation; you can’t buy currencies because of King Dollar, so gold becomes a logical choice.”
It’s clear that there is a powerful case to buy gold now. Not only is gold undervalued and, therefore, this is an opportune moment to acquire the precious metal at a highly favourable rate, but it’s also a chance to futureproof a portfolio against inflation and risk.
Don’t delay. Buy now.
