E.B. Tucker isn’t the only expert with high expectations for a strong surge in price. His outlook comes on the back of comments by Lukman Otunuga, the senior research analyst at online financial trading and investment firm, FXTM. Otunuga believes that gold is ready to break to the upside, with all of the factors required to drive prices higher already in place. He cites a wide range of factors which are favourable for the precious metal and which fully support a bull run.
He said, “I see a break to the upside… the key fundamental themes that support gold remain firmly intact. We’re talking about low to zero government gold yields, rising COVID cases in some parts of Europe and the United States, political uncertainty ahead of the presidential election in November, the dollar that just can’t catch a break and concerns of a slowing global growth despite some bright spots of economic data here and there.
“On top of this, the Fed recently flipped their outlook on inflation. With the fact that the Fed is allowing inflation to run above that 2%, interest rates are going to remain low for an extended period, which is good news for gold as it tends to flourish in a low interest rate environment. In the medium to longer term, I believe gold has the potential to push now.
Buy now to be in the opportune position to benefit.