Gold is firmly in bull mode, gaining 8% last month and setting prices on course to exceed 2020’s all-time high with trading above £1,414 ($2,000) expected in the coming weeks. May’s performance was a return to the rapid gains we saw last year, and is the precious metal’s best showing since July 2020.
Bloomberg’s Mike McGlone says disappointing economic and jobs data plus inflation and a weaker dollar all ignited gold in May – and that is good news if you’re ready to buy now as those are long-term factors which won’t disappear overnight. The senior commodity strategist expects gold prices to continue on their upward trajectory, saying “Gold is a fundamentally sound bull market ripe to resume its upward trajectory … [and it] looks to be at a discount in a bull market. A solid gold base appears to be forming below £1,202 ($1,700). Seemingly unstoppable trends in rising debt and quantitative easing should keep gold buoyed. If crude oil peaks and yields decline, underpinnings for gold improve.
“The top band at about £1,414 ($2,000) is good initial resistance but is more likely to act as a speed bump, notably if stock-market volatility rises … Rapidly rising fiscal and monetary stimulus should keep gold… supported.”
Buy now to benefit as prices continue to climb higher.