Although we have seen gold guns blazing this week, additional gains are very close, according to one industry watcher. Craig Erlam, an analyst at OANDA, says room to manoeuvre remains – so buy now to benefit.
“The main factor supporting gold at the moment is the extraordinary amount of stimulus from central banks. I don’t think it’s been fully priced in yet. The record highs hit in the aftermath of the global financial crisis, and even higher, look perfectly reasonable, under the circumstances. The $1,800 level does not seem very far away.”
Another expert says there could be an opportunity to buy at lower levels soon due to losses elsewhere. National Australia Bank economist, John Sharma said, “While gold will continue to be in demand, sometimes investors need funds to cover their margin calls, so losses in other financial assets might lead to falls in the gold price.” Be ready to act quickly to capitalise.