Why have gold prices gone up by 10 percent in just 17 days?
Gold is the most precious metal making it a valuable asset. During times of economic instability, gold is considered as a safe haven for investors. A low-risk asset, investing in gold seems to be a viable decision in times of market volatility.
- At present, gold prices have spiked rapidly in a short period. This unusual turn came in as a surprise for the #financialmarkets. People now believe gold is entering the ‘#bullmarket’. In a bull market, prices generally rise consistently, and this is viewed as a positive development for gold investors.
- If, you have read my previous post on gold prices, I had mentioned that #China and other #BRICS nations are purchasing good quantities of physical gold. This could lead to a #hike in gold prices in the future. Seeing the current scenario, the upward trend in gold prices has begun.
- Also, recent research suggests that these BRICS and other nations have accumulated even more gold than the United States. This is important because the #US has historically held a lot of gold.
- Some investors may view gold as the perfect hedge against recession. An ideal and safe place to put in their money when the economy gets shaky during recession, inflation and credit collapse.
However, with so much buzz around gold and its whopping increase, what’s in store for the financial markets? Should we brace ourselves for something big and important in the world of finance?
- Since May 2019, Gold has made three attempts to break the price level of $2080. This means it reached that level but didn’t go higher.
- However, now there are high chances gold prices may finally break through the $2080 level. If it does, it could lead to a significant increase in the price of gold as high as $2350-$2500.
- Since a few months, I have been recommending investing in gold for long term benefits. Also, when gold prices touched the $1800 levels, the bottom of the bullish trend recently, it indicated the beginning of an upward trend in gold prices.
- However, now that gold prices have reached the $1990 to $1995 levels, we might witness a retracement or consolidation, because that's a price level where it's been resistant to increasing further. If this occurs, it will be good chance to buy more gold when the price dips.
So, if you are looking to #diversify your portfolio and seek protection against inflation or recession, #invest in Gold.
Make gold a treasured addition to a well-diversified investment strategy.
