In further good news for strong gold prices moving forwards, JP Morgan says that the tide is now turning on inflation. In a note to investors, the financial services leader said there were already signs of inflation. It also called this the start of a commodity supercycle, citing several factors which financial institutions, economists and analysts have repeatedly identified as being bullish for gold and supportive of record highs in the coming months and years.
Analysts from JP Morgan said, “We believe that the new commodity upswing… has started. The tide on yields and inflation is turning.” The analysts say that considerations such as inflation, the very likely continuance of accommodative monetary and fiscal policies into the longer term, a deteriorating U.S. dollar, and what will be a costly focus on reversing climate change all support a bullish stance on gold. Their forecast is backed by a spectrum of other financial institutions including Bank of America and Goldman Sachs.
With higher prices almost certainly here for the long haul, now is the time to move and add gold to your portfolio in order to derive maximum benefit from the precious metal.