There’s been a very enticing window to buy over the course of the last month. If you haven’t yet acted on this wide open opportunity to buy, now is the time to do so with longer term prices trending only one way; up.
Ned Davis Research’s chief global investment strategist, Tim Hayes says that gold prices continue to perform strongly with a clear upwards trajectory. Noting that investors shouldn’t get caught up in temporary dips, he describes gold as an ideal long-term investment, commenting, “The long-term model remains in a strong buy signal.”
One of the issues for gold in recent weeks has been the stronger U.S. dollar and storming bond yields. However, when we look at the bigger picture, that is about to change Hayes argues. “We are at the end of the tightening cycle,” he said. “That is true for central banks globally. We are in a totally different place than we were last year. The worry now is how much economic weakness are we going to see as the Fed tries to get ahead of inflation; that will be positive for gold.”
One other factor which will lend its support to the gold bulls is the American government’s ongoing fiscal deficit. While policy makers struggle to agree funding packages on Capitol Hill and credit agencies mull over the government’s ability to service its debt, the deficit continues to run rampant – and will be a supportive factor for gold. “The [US government’s] 12-month total deficit is at $1.9 trillion dollars; it’s down a little bit from extreme levels, but that is still pretty excessive and will be negative for the U.S. dollar and positive for gold,” Hayes adds.
Be sure that you’re strategically positioned to benefit from the upcoming surge in gold prices. Buy now.
