The French bank, Société Générale has underlined the pivotal importance of holding gold right now, describing the yellow metal as a ‘core asset’ as America braces for the turbulence of election year.
In an update, the bank said that it was reducing its commodity holdings, but retaining its allocation of gold due to the expected political and economic unrest expected as the presidential primaries heat up. Reiterating the stabilising force of gold during any period of uncertainty, the banks analysts note, “Ahead of the US election and associated risks on the fiscal policy, we find virtue in gold.”
According to analysts, gold is on course to move higher still following a red-hot run of price gains at the beginning of the month. The bank says that its forecasts have the yellow metal reaching price levels of £1,935 ($2,460).
“Gold has established itself above the upper part of its multi-year range £1,632 ($2,075) in the form of a rectangle; this denotes the uptrend has resumed. It has also overcome the peak achieved in December,” they explain.
“The break from multi-year consolidation points towards the possibility of larger upside. The up move is likely to extend towards the next objectives located at projections of £1,770 ($2,250) and £1,856 ($2,360). The target for the rectangle is located at £1,935 ($2,460).”
Société Générale is one of a growing number of institutions which have issued similar price forecasts. With consensus growing that we’re seeing the beginnings of a sustained move forwards, there’s no time to waste. Buy gold now.
