Gold prices have slowed down a bit in recent action following strong gains seen in recent weeks. In fact, the yellow metal now looks poised for a run at the $1400 per ounce price level, and there really does not appear to be much standing in gold’s way.
As we discussed previously, a pullback allowing some back and fill trade in gold is not only likely, but also a good thing. Markets rarely go straight up or straight down, and when they do such moves usually prove to be unsustainable. Gold taking its time and not going parabolic should be welcomed by long-term investors, as it may make the move higher more sustainable.
As far as roadblocks for the yellow metal go at this point, there really only appear to be three possibilities:
- The Fed becoming much more aggressive with rates: This would seem to be very, very unlikely. The Fed has maintained a dovish tone in recent months, and appears to be in no hurry at all to increase rates. Even with another rate hike in December, the pace of any additional hikes is likely to be extremely slow.
- An even lower VIX: Even with some mild market volatility seen in recent weeks, the VIX remains near all-time lows. AS the stock market bull approaches its end, there is likely really only one way for volatility to go-and that’s up.
- A stronger dollar: The dollar has been trending lower for weeks, and appears poised for even more downside. This trend is likely to continue as Washington gridlock continues to stand in the way of any major tax or infrastructure legislation.
The gold market seems to be seeing a green light to go higher, and prices could not only potentially reach the $1400 market, but could possibly move well beyond that level in the coming weeks and months.
Ongoing low rates, a stop market top, a weak dollar, geopolitical tensions and general risk aversion may all feed capital into gold and other hard assets. In fact, a major stock market collapse or reversal has the potential to drive massive capital inflows into gold, and current price levels may be just the beginning of a significant and protracted bull market.
If you do not already own physical gold, now may be the ideal time to get started. Adding gold to your holdings has never been easier than it is today. The yellow metal can add much-needed diversification to your portfolio, and may also potentially provide a meaningful hedge against a lower dollar, deflation, geopolitical issues and more.
Speak with an Advantage Gold account executive today about the potential benefits of physical gold ownership. Our associates are here to answer any questions you may have, and can even show you how to build a gold portfolio using your IRA account.
Don’t wait for gold prices to move higher from current levels before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, deflation, dollar, Fed, geopolitics, gold, vix