Gold prices have been in rally mode over the last few weeks with some notable gains however, there is a window to buy open right now for those ready to move fast. The bulls have seen their progress slowed over the last few days by a stronger U.S. dollar and improved U.S. Treasury yields – creating a precious opportunity for strategic investors to make their move and acquire the yellow metal.
The greenback has benefitted from concerns that both China and the Eurozone economies are struggling. Those fears have pushed global bonds upwards and as a result, lent support to the dollar, keeping gold in a holding pattern after several days of price increases in recent weeks.
The dollar is also pulling strength from the rising cost of crude oil, which could be seen as an indicator that the Federal Reserve still has some work to do on inflation. However, it should also be noted that outside of the short term impact, higher oil prices are often helpful to the gold bulls and can ignite a price rally meaning you’ll want to buy before that chain reaction kicks in.
If you’re ready to heed expert advice to buy the dip, now is the time to make your move. Gold prices are trading around £1,533 this morning (Wednesday) but as we have seen time and time again, prices can (and often do) rally sharply.
