Gold has been going from strength to strength of late – if you caught our Wednesday briefing, you’ll know that there is an increasing expectation that the precious metal will soar to new highs in the coming months as inflation begins to creep in. As we reported in our mid-week bulletin, Ned Davis Research’s chief global investment strategist, Tim Hayes expects gold to smash all current records saying “Gold can go a lot higher from here; we’re not just looking at record highs. Once we get a breakout, it will bring in a whole new group of investors who will start to buy into the idea that they need gold as an inflation hedge.”
Yesterday (Thursday) we saw what could possibly be the start of that shift higher as gold burst through the key psychological level of £1,293 ($1,800) to finish the day’s trading substantially higher at £1,304 ($1,815). To illustrate the magnitude of this move, prices of around £1,268 – £1,292 ($1765 – $1798) have been the norm over the last two weeks.
Technical market analyst Gary Wagner says this is a sign of things to come, explaining “In the case of the 10-year notes, yields have been heading lower recently, as some analysts predict it will continue to see a diminishing yield which could take it back to approximately 1%. The fact that gold prices finished so strongly and so far above major resistance suggests that it has much higher to go in the near future.”
Act quickly; buy now before prices escalate further and position yourself to benefit from the bull run.