Gold is performing strongly right now, with a receding US dollar giving the precious metal momentum as the week draws to a close. In trading yesterday (Thursday) it had reached a five-week high by lunchtime, hitting £1,283.49 ($1,757.90). This action suggests that a near-term market low is in place and in turn, establishes a must stronger near-term technical posture for gold.
There are other positive factors emerging this week, over and above the weakening dollar, that support stronger gold prices moving forward too, suggesting that this increase could be the start of further gains for the bulls. One key factor was reconfirmed in comments made by the Federal Reserve Chairman, Jerome Powell who on Thursday reiterated the Fed’s commitment to maintaining a very accommodative monetary policy for the foreseeable future. If you grabbed your copy of our 2021 Brochure at the start of the year, you’ll have seen that veteran analysts and financial institutions alike all cited loose monetary policy as being a force for higher gold prices, so Powell’s comments on Thursday are very positive for the precious metal.
Geopolitical tensions around the world are also simmering, with unrest spiking once again in Northern Ireland, a military coup causing instability in Myanmar and the longstanding China, USA and Russia relations remaining frosty.
Additional uncertainty this week regarding a possible link between the AstraZeneca vaccine and blood clots has also led many countries to halt its roll out or severely limit the age groups administered, this could threaten progress out of the pandemic, again putting gold back in the driving seat for the risk averse.
Now is an opportune moment to buy. Act quickly to add gold to your investment portfolio.