All summer long we have heard from a range of industry experts advising investors to buy the dip; a sound piece of advice when you consider that so far this year, gold has rocketed to record all-time highs of £1,554 ($2,074), adding 27% to its beginning of year value by the end of July. This is especially impressive considering predictions last year called for just a 20% increase in 2020.

If you read our mid-week bulletin on Wednesday, you’ll know that after the expected pull back a couple of weeks ago, gold rapidly made up that lost ground, to once again trade at £1,490 ($2,000) earlier this week. The recovery was described as ‘quicker than expected’ by Denmark’s Saxo Bank – but today the window of opportunity has opened again with the precious metal trading at £1,463 ($1,902) yesterday.

The dip coincides with minutes released by the Federal Reserve which many observers have interpreted as indicating that there are plans to cap bond yields on the table. The minutes also failed to outline any additional information on interest rate expectations. The US dollar, which has suffered large losses in recent weeks, has slowly started to regain some strength in the last few days, which has also helped to create the window to buy.

Act quickly though – as one industry expert thinks the move downwards won’t last and is based on an incorrect assumption. Charlie Nedoss, the senior market strategist at LaSalle Futures Group said, “The downward pressure on gold has been the perception that interest rates are moving higher. I don’t subscribe to that view.”

A look at the wider economic landscape also provides compelling indications that this decline is temporary, with all of the factors which have pushed gold so far on this bull run still very much in play. There were an additional one million US jobless claims this week for example, as the brutal market continues to bite. A similar situation is also playing out in the UK, with almost one million jobs lost and warnings of a ‘very bumpy’ winter ahead. Around the world, infection rates are climbing once again, with some European countries reporting a 70% spike in cases. It was also confirmed today that the UK’s balance sheet is £2trn in the red and the dollar is only just beginning to emerge from a two-year low.

If you’ve been waiting to buy, act fast and do it right now because it’s only a matter of time before the bull run picks up the pace.

This website is published by The Gold Safe Ltd, a Company registered in England and Wales with Company number: 11994725 a subsidiary of the United Kingdom Asset Company Ltd, a Company registered in England and Wales with Company number: 09784057 and is intended for information and promotional purposes only. The information provided in our free guide is not intended as an offer to invest and should not be construed as financial advice.

Fees: There are no fees for using this website or service.

Contact us: Tel: 0203 695 3400

Address: 71-75 Shelton Street, Covent Garden, London WC2H 9JQ

All rights reserved copyright 2020 The Gold Safe Ltd

Follow us on:

    Wait! Before You Leave Download The 'Ultimate Guide to Gold Investing'
    FREE of Charge