The gold market has not seen any substantial upside rallies in recent weeks. In fact, after recently coming under pressure, the metal has simply been treading water around its 200-day moving average and the $1280-$1290 region. The longer it sits in this region, however, the better.
Although the long-term bullish case for gold sustainability remains intact,
There have been no shortage of reasons for the metal to see some selling pressure in recent months. Rising interest rates, a stronger dollar and fresh all-time highs for equity markets to name a few. Despite these headwinds, however, the yellow metal has stood its ground. The bears have simply not been able to take prices on a fresh leg lower and it seems that recent selling pressure has now been fully absorbed by hungry buyers.
A very strong case can be made for gold moving higher after failed attempts to move the market lower. In fact, the longer the market builds a substantial base around current levels, the more sustainable a major upside rally may be.
It is also important to keep in mind the bigger picture and to ignore much of the current market “noise.” Regardless of how high they may go; stocks are not likely to keep moving higher indefinitely. At some point, the bottom will fall out again and the next great bear market will ensue. Likewise, interest rates are also not likely to keep going up. Some analysts are already betting on a rate cut before the end of the year, and the central bank may have no choice but to begin easing again to fight the next recession. The tailwinds of tax cuts and government spending that have boosted the dollar are also likely to fade, and eventually the greenback may resume its long-term downtrend. All of these factors and more could be considered bullish for gold.
Current price levels could potentially prove to be an excellent long-term bargain.
Gold sustainability is reflected by the current market. The gold market is off about 40 percent from its previous all-time highs near $2000 per-ounce and could easily challenge these highs again or even move well-beyond. It may not be a question of “if” but rather “when.” Not only does an allocation in gold provide tremendous upside potential, but it may also provide an important hedge against rising inflation and a weaker dollar.
Adding this key asset class to your portfolio has never been easier and arguably never more important. Pick up the phone and speak with an Advantage Gold account executive today about the potential benefits of gold ownership and to learn more about the key role this asset class may play in the years and decades ahead. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation using an IRA account.
Don’t wait for the next major stock market collapse or economic crisis before acting. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: bear market, current market, current price levels, gold market, Gold sustainability, long-term case, trajectory