The gold market is showing some significant strength today as the metal has once again moved back over the psychologically important $1200 level. It’s no secret that the dollar index has weighed heavily on gold in recent months, but there seems to be increasing concerns that the greenback is not likely to maintain its recent strength.
With the recent Fed rate hike having come and gone, and with expectations of another hike before the end of the year already factored into prices, the gold market may finally see some upside on numerous bullish factors.
The market has been in the process of building a base for some time now, and today’s bullish price action could be just what the doctor ordered to get the next wave higher going full force. Investors will likely remain focused on the greenback, which could be very top-heavy at this point and which may be quite vulnerable to a significant sell-off as the effects of tax cuts and stimulus wear off.
The dollar index is also not the only issue that could propel gold significantly higher from current levels. Stocks have remained strong, yet are likely at or near a long-term top. With each day of higher prices comes an increasing risk of a massive and historic blowout in valuations. While the aging bull market may simply be running low on fuel, there are other factors at work that could potentially rock global financial markets.
The situation in Italy is extremely serious, and could send shockwaves throughout the global financial system. Recent reports have suggested that the Italian Government is taking a hardline with EU officials who have requested that the country water down its aggressive budget plans. Although there is likely a lot of drama left to unfold, the Eurozone’s second most indebted nation is in serious financial trouble and its financial markets are paying a steep price.
The current situation in Italy is untenable, and once again the stability of the EU as a whole could be called into question.
Needless to say, there are numerous issues that could fuel the next great asset rotation, and such a rotation could arrive sooner rather than later. Some investors are already taking note, and hard assets like gold could be on their way to significantly higher prices. That makes now the time to act.
Adding gold to your portfolio has never been easier, and can be accomplished with a simple phone call. Speak with an Advantage Gold account executive today about the potential benefits of gold ownership and how right now may be the ideal time to begin building a significant allocation in this key asset class.
Our representatives are here to answer any questions you may have, and can even show you how to incorporate gold into your IRA account.
Don’t wait for the next massive stock market blowout or for gold prices 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, dollar, eu, eurozone, fed rate hike, gold, stock valuation