The gold market has been relatively range bound for weeks now, could this sideways action simply be the calm before the storm? The market has been leaving some important clues that could point to higher prices. Any significant dips in the price of gold have been met by willing buyers. Despite stocks making fresh all-time highs, the gold market has not cracked, and the bears have been unable to overcome buying pressure.
What could potentially lead to higher gold in the months ahead and in the year to come?
Although there are numerous issues that could be considered highly bullish for the metal, two major points stand out right now that could propel prices higher.
First, the notion of higher interest rates has likely been largely overblown. It doesn’t matter who the Fed Chair is, the fact is that the economy is likely still not strong enough to tolerate higher rates, and the Fed seems to know it. Raising rates prematurely could undo much of the work the central bank has done in recent years by maintaining a zero to extremely low rate policy. Think stocks are higher just because corporate earnings are doing so well? Think again.
The path of rates is likely to remain very subdued for a long time. What do you think will happen when the next inevitable stock market crash takes place and investors become extremely fearful? Could the central bank be forced to keep rates steady-or perhaps even lower them again? You bet.
The current geopolitical landscape could also fuel higher prices. There are numerous, significant geopolitical issues taking place right now. North Korea, Catalonia, conflict in the Middle East. The globe is a place with serious problems right now, and those problems will require extensive time to be dealt with. North Korea, for example, has made it very clear thus far that they have no intentions of giving up their nuclear ambitions. Catalonia could simply be the first of other European regions that seek their independence.
The state of geopolitics is such that perceived safe haven assets such as gold are not likely to fall too far in price, and in fact they may do just the opposite.
As the final months of 2017 come to a close, now is the time to begin thinking strategically about next year. If you do not already have an allocation in hard assets like physical gold, now may be the time to get going.
Building an allocation in physical gold has never been easier than it is today. Simply pick up the phone and speak with an Advantage Gold account executive. Our associates can discuss with you the potential benefits of gold ownership, and can even show you how to incorporate the metal in an IRA account.
The smart money always plans ahead. Now is the time to start thinking about your plan for next year. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, catalonia, Fed, gold, interest rates, north korea