Now is the perfect time to buy
The gold market is currently showing remarkable momentum, which is further fuelled by the latest developments on the
on the international capital markets.
Despite gold price at historic high - the trend continues to point upwards
The gold market is currently showing remarkable dynamism, further fueled by recent developments in the international capital markets. In July 2024, the gold price reached a new record high of $2,483 per ounce, and trends indicate that this upward trend will continue [1].
Current Market Situation:
- Interest Rate Cut Expectations and Dollar Weakness: Despite ongoing inflation and strong labor market data, the U.S. Federal Reserve has concretized its plans for interest rate cuts. While originally up to three rate cuts were expected for 2024, now only a single cut is anticipated, which could begin at the end of 2024. This development, combined with a slight weakening of the U.S. dollar, enhances the attractiveness of gold as a safe haven [1].
- Geopolitical Tensions and Uncertainties: The escalation of geopolitical risks, particularly in Europe and the Middle East, has further fueled interest in gold. These risks increase market uncertainty and drive investors into safe asset classes like gold, which is already benefiting from increased demand [2].
- Lack of Alternative Investments: Given the uncertainty in the stock markets and the volatility of other asset classes, many investors see gold as the best choice to protect wealth while also benefiting from potential price increases. The fact that gold has decoupled from traditional correlations, particularly with the real yields of U.S. Treasury bonds, underscores its role as an independent investment [1].
Why Buy Now?
The combination of expected interest rate cuts, geopolitical uncertainties, and sustained high demand for gold, particularly from central banks, suggests that the gold price could continue to rise. Experts predict that the gold price will climb to $2,500 per ounce by the end of 2024, with further potential for 2025 [3]. Considering these developments, now might be the best time to invest in physical gold before the market picks up further. Take advantage of the current market situation to secure your portfolio and benefit from upcoming price increases.
These factors make it sensible to continue holding gold bars and/or acquire new gold bars to benefit from potential future value increases and stable value development.
Sources:
[1] J.P. Morgan Research – www.jpmorgan.com
[2] Monex – www.monex.com
[3] GoldSilver – www.goldsilver.com
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