If you have been waiting to buy gold, it’s time to act and buy before prices spike. Fund manager Charlie Morris says that he expects gold to rise significantly in the near term, citing a host of factors which support a reignited gold bull run.
Although gold currently sits around £1,360 ($1,800) thanks to optimistic vaccine news, it’s primed to push much higher after this period of consolidation. Morris says the dip was to be expected and thanks to multiple factors which are supportive of record prices still in play, now is the time to invest.
He explains, “The gold market was pretty hot this summer, so it’s not surprising to see the price slip back a bit heading into year-end. For gold, the bond market hasn’t noticed the rally in oil and copper, but when they do, you will start to see real yields drop further into negative territory. That is when gold starts to rally again. Inflation expectations have to go higher unless the central banks around the world just halt everything they are doing, and that is very unlikely to happen. Gold is the reference point of what an anti-debasement stable asset is supposed to be.”
Long term, Morris sets his target for gold at £5,193 ($7,000).