We have seen gold prices hit multiple price highs over the month of March, but it would be a mistake to think that the yellow metal has reached its peak, analysts say.
The StoneX Market Analysts Fawad Razaqzada said that there is undoubtedly much more to come from the bulls, with another burst of price action expected when the U.S. dollar once again falls back. What’s more, the push to a new all-time high is likely to come in the near term, meaning you should be prepared to act now before prices rise. He explained, “I am unequivocally convinced that its long-term trajectory remains bullish, and it is conceivable that prices could soon reach unprecedented highs again.”
While Razaqzada says the greenback has been able to gain some ground due to losses in other currencies, he remains convinced that the Federal Reserve will continue with its plan to cut rates this summer – an action that is expected to trigger unprecedented price highs for gold.
“Drops in the pound, Aussie dollar and euro further boosted the dollar’s ascent, alongside encouraging US economic indicators such as the latest PMIs, existing home sales and unemployment claims” he adds.
“However, these indicators are unlikely to dissuade the Fed from considering rate cuts in June, particularly if inflation remains subdued.”
Gold is currently trading a little way below its most recent record high of £1,737 at £1,735 at time of writing. With prices set to go significantly higher, this is a good opportunity to buy. Don’t delay.
