You can’t afford to rest on your laurels if you haven’t yet pulled the trigger and added gold to your portfolio according to one Canadian bank, which says we haven’t yet seen the end of upwards price action.
In a new research note published Monday, BMO Nesbit Burns says it sees the current geopolitical and economic conditions favouring gold. Bank analyst Jackie Przybylowski explained, “In the near-term, we expect significant volatility in commodity markets, geopolitical actions, and in the macroeconomic outlook; generally is supportive of gold as a potential counter-cyclical investment.
“The current market volatility, potential for weakness in the Chinese economy, possible increased geopolitical instability, especially in Peru and Chile, and ongoing delays to global reopening as the world wrestles with COVID variants could spur investor interest in gold equities. The current low interest level in the sector could provide an attractive entry point, in our view.”