If you’re a regular reader, you’ll know that gold has been on a sharp ascent in recent weeks, something which makes this morning’s brief window of opportunity all the more urgent. Ahead of a scheduled Federal Reserve meeting later today (Wednesday) gold prices have fallen back to around £1,311 ($1,850), making now a wonderful buying opportunity. Given that all industry forecasts see gold continuing to be bullish through the rest of the year, this dip is one not to be missed.
Strategists from the Canadian Bank TD Securities say that they expect the focus of the meeting to be around inflation noting, “The main changes should be for inflation, not growth or the unemployment rate … Median projections for core inflation in 2022/2023 will probably rise slightly, consistent with a sizable revision to 2021 being viewed as ‘largely reflecting transitory factors.’ The median dot will probably show a rate hike by end-23.”
Senior research analyst Lukman Otunuga said there could be an opportunity for gold to capitalise off the back of the meeting, giving additional impetuous to buy now, explaining “If the central bank remains dovish and continues to preach the ‘transitory’ mantra, this could inject gold bugs with fresh inspiration to challenge the £1,346 ($1,900) psychological level.”
Comerzbank said that whatever the outcome, it expects gold to remain in a bullish market, with prices to continue increasing.
Buy now before this window slams shut.