Gold has been trading around the $1300 mark for several sessions now, and the yellow metal may simply be biding its time until there is enough buying “tinder” to stage a clean upside breakout above the recent highs.
Fortunately for the gold bulls, there are numerous issues that could potentially fuel a significant break higher in prices, and one of them could be this week’s Fed symposium taking place in Jackson Hole, Wyoming.
This symposium is hosted by the Kansas City Federal Reserve and essentially is a gathering of Fed officials, policy makers, academics and economists. This year’s topic is “Fostering a Dynamic Global Economy.” Included on the list of prominent speakers are Federal Reserve Chairwoman Janet Yellen and ECB President Mario Draghi.
This annual retreat is important to investors and markets as it gives some key insight into monetary policy and what policy decision-makers may be thinking. The gathering could be especially interesting this year given all of the talk about higher rates and scaling back of balance sheets, etc.
Commentary could, however, sing a bit of a different tune. We have suggested that the Fed is really in no hurry at all to raise rates, and even with a couple small increases already seen rates are likely to stay very low for a long time. ECB President Draghi could potentially reiterate a dovish stance when it comes to monetary policy.
Given numerous domestic and geopolitical issues currently being tackled-or needing to be tackled- policy makers may remain very much on the dovish side of the ledger. The ongoing lack of inflationary pressures and symptoms of a stock market that could be reversing course could lead to a dovish consensus. This, in turn, could essentially give gold buyers a major green light for buying at current levels or adding to long positions.
With stocks potentially ready to crack and a Fed that may stick to an accommodating policy, gold could be headed higher in the coming weeks and months-much higher.
Now may be the ideal time to consider adding further diversification to your holdings with physical gold. At current levels, gold could prove to be a major bargain right now as it potentially embarks on a multi-year protracted bull run higher.
Markets are living off some significant warning signals right now, the question is will you listen…
Gold could potentially have a ton of upside from here, while stocks may be very limited at this point given the age of the bull market. In fact, stocks could have possibly already put in a major top-or be in the process of doing so.
If you have ever considered an allocation in physical gold, now may be the ideal time. Adding gold to your holdings has never been easier than it is today.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our account executives are here to answer any questions you may have, and can even show you how to take advantage of physical gold using your IRA account.
Don’t wait for the next major stock market collapse or for gold to move sharply higher. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: advantage gold, draghi, ecb, Fed, gold, stock market decline, yellen