Signs are beginning to emerge that suggest the U.S. economy could be weakening – and that spells great news for gold.
The latest data from the Commerce Department has revealed that orders for durable goods declined by 6.1% last month. The drop was much sharper than economists had expected, with forecasts prior to the data release calling for a decline of just 4.9%. This disparity suggests that the pace of decline is unexpected. This drop is almost certain to be reflected in the first quarter’s GDP figures – something which may give the Federal Reserve food for thought when it comes to timing of rate cuts.
If this decline is an indication that the economy is slowing, the gold bulls will be amongst the first to benefit. Any hint of a recession could realistically bring forward the timing of the first rate cut, something which gold prices are holding out for. Don’t wait for that spark to ignite and the price of gold to spike before you take action.
Buy now and position yourself for success ahead of the curve.
