Experts say that we could soon see gold reaching a new high of $1600 an ounce thanks to rocky political waters, making now an optimum time to buy.
Analysts expect to see a new surge in the summer-long rally – and we may be seeing the start of this after gains yesterday (Tuesday) which saw the precious metal hit just over $1540 an ounce, signalling you should act quick to take full advantage of this window of opportunity as a gold investor. The first rises of the day were evident throughout President Trump’s speech at the UN, with gold prices steadily climbing as he lambasted Iran and China.
Bart Melek, who is head of global strategy at TD Securities says it’s wise to buy gold now, noting, “While we think the gold market pauses for a while, the gold rally should continue to take prices into the $1,600s. Weakness in Europe and China will likely force Fed Chair Powell to deliver a substantial policy easing… The short-term lending system has come under pressure last week with the Federal Reserve forced to intervene with liquidity injections for the first time in a decade … Some gold observers see this as a sign of instability and a signal that the U.S. central bank will need to continue to provide liquidity, if not de-facto Quantitative Easing.”
His sentiments were echoed by Scotiabank which says it expects gold to benefit from the political climate through autumn, commenting, “…a structural driver (geopolitical escalation) has been renewed which puts the short-term target back on $1,600 gold.”