The persistent advice from industry analysts and experts is to buy the dip wherever possible for those keen to invest in gold – something that should be heeded today with current gold prices presenting an enormous opportunity for those who wish to move quickly. However, fast action is essential to capitalise on this tremendous buying opportunity as the potential for a sharp increase in prices already exists, analysts say.
Gold is currently trading around £1,457 ($1,641) making for a highly favourable situation for anyone looking to add gold to their portfolio to hedge against inflation and bring stability during what continues to be an extremely volatile period for Wall Street.
However, to benefit from this price action, it’s imperative to move quickly before the window slams shut as we’re already seeing external factors that are likely to push the gold bulls higher shifting into place. This means that the current highly attractive prices won’t last for long.
Michael Boutros, a strategist for Daily FX said, “Whether it’s going to be the increase in market turmoil, a larger downturn in equities, or a deterioration in the war. It’s hard for me to see a continued selloff here.”
What’s more, while the U.S. dollar has performed strongly of late, the greenback is now at the point of exhaustion once again, so it won’t be able to continue hemming in gold prices as has been the case for the last few weeks. Boutros expects the stronger dollar run is about to run out of steam, clearing the way to higher gold prices. “Fed funds are now at 5% as the expected terminal rate, up from 4.6%,” he said. “The dollar is a little bit exhausted here.”
As the chess pieces move into position for gold, we can expect to see price action going up a gear. Don’t miss the highly attractive price on offer right now.
