Could we be about to see a new price high set, just days into January? This is entirely possible as the bulls ride an enormous surge of momentum into the new year. Prices are currently hovering around the £1,610 mark. This is just a fraction under the record set in December and momentum is with the yellow metal following this week’s FOMC minutes release.
With the trajectory pointing firmly skywards, we could see gold prices hit £1,738 should this path continue into next week. As the impact of rate cut prospects begins to filter through, gold could explode into life and smash through the price ceiling in no time at all.
The U.S. dollar index is struggling to gain any kind of momentum, which is especially pertinent to gold. While a strong dollar provides a gold headwind, confirmation that rate cuts are imminent mires the greenback in quicksand and makes it that much harder for the dollar to coral gold prices in any meaningful way.
It’s very clear that momentum is with gold right now with prices riding the wave of favourable policy and wider geopolitical and economic uncertainty. Don’t wait for those new highs to hit. You don’t have a moment to waste if you want to bolster your portfolio while prices remain under a new record high.
