Gold prices have gained more than £74 ($100) already this month, showcasing the continuing strength of the precious metal. Despite these gains, now really is the optimal time to buy as we may see a period of price consolidation before the rally resumes.
As we reported in our Bulletin last week and more recently in our mid-week update on Wednesday, experts are unified in their expectations that the yellow metal will meet or surpass its previous record highs within the next quarter. Most recently, Société Générale said that it expects gold to trade at those levels for an extended period of time, while Goldman Sachs has the all-time high as its ‘baseline’ prediction – meaning that pricing could realistically reach much higher, especially given the inflation pressures that are sweeping across the Atlantic.
Another factor which may well fuel even higher gold gains than expected over the course of the next few months is the fourth wave of COVID which today pushed Austria to make vaccines a legal requirement and confirm a fourth national lockdown effective Saturday. Other European nations may also follow suit with Germany hard hit and likely to introduce tougher restrictions imminently.
With gold showing time and time again that it thrives in this environment, the gains we have seen so far this month are very likely to be eclipsed and very quickly.
Don’t delay. Buy now before prices rise further.