The World Gold Council says the current price correction is no cause for concern and that the entirely normal pull back is not here for the long term thanks to strong investment demand and a growing pile of other supportive factors – a sentiment which further underlines the urgency of moving to buy now.
John Reade, who is the chief market strategist for the World Gold Council says the recent price action does not worry him, calling the current dip ‘healthy’ for gold prices moving forwards. He said that while consumer demand for gold has waned with caution being the watchword for many households feeling the pinch of furlough and job losses, that’s not the case for investors.
He says gold continues to shine brightly noting, “We saw a complete collapse in consumer demand for the first half of the year. Fortunately, foreign investment demand, particularly from North America and Europe, is more than enough to offset that consumer weakness. Investors have shown their metal to me and I would expect to see investment demand strong in a balance of 2020 and into next year as well. There’s too much risk and uncertainty out there at the moment and that’s usually a very strong driver of investment flows.”
Reade also cites low interest rates as being favourable for gold saying, “I wonder whether I’ll ever see an interest rate hike again, and I’m not that old.” Low rates have shown to be very supportive of price gains and increase gold’s appeal exponentially, suggesting the precious metal is going to be very much in demand for the long haul.
Buy now to benefit.