The stage is set for gold prices to move higher in decisive fashion according to new analysis, which cites the strong possibility of a U.S. recession and the upcoming presidential election – along with elections in more than 75 countries worldwide- as being key supporting factors.
The precious metals outlook, drafted by analysts from Heraeus, pinpoints growing signs of a recession as one of the key bullish factors set to drive prices higher over the course of the year. The risk of recession makes rate cuts even more likely, which further boosts the bulls’ prospects.
“There is a lingering risk of a recession in the US at some point this year,” the analysts note. “The US yield curve inversion is narrowing, and recessions do not usually start until after short-term yields have fallen back below the long-term yield. If and when a recession becomes apparent, the Fed can be expected to cut rates, likely weakening the dollar and benefitting the gold price.”
Whether or not recession predictions are born out, 2024 is an election year. With Republican frontrunner Donald Trump already barred from ballots and facing dozens of legal charges, this promises to be a race to the White House like no other. For gold, it’s nothing but good news with previous election years telling us that price gains are all but a given.
According to the precious metals forecast, “Since 2000, gold has moved 3.14% higher in the three months leading up to an election month. By comparison, the average change in the gold price over any given three-month period is just +1.8%. Greater uncertainty in 2024 stemming from both recession risk and a possible Trump re-election could see the gold price move higher.”
Don’t wait until prices spike. Buy gold now.
