If you haven’t yet taken advantage of the recent opportunity to buy the dip, the window appears set to close very soon, with analysts expecting gold prices to perform well throughout the remainder of the year. The latest precious metals outlook from Heraeus paints a very positive picture for gold and makes a compelling case to take decisive action before prices begin to rise as we move closer towards the end of 2023.
In addition to an increase in consumer demand for gold, analysts believe that the Federal Reserve may pause its rate hikes program. This could see two of the bulls’ biggest foes – Treasury bond yields and the dollar – softening, creating space for gold prices to rise.
The report explains, “The probability of a hike in November has fallen from 41% a month ago to 7.7% as of last week. US yields and the dollar softened immediately following these statements, suggesting that there may be no need for further increases to interest rates in light of the recent rally in yields across the curve, despite a higher-than-expected inflation reading for September. Two-year yields remain above 5% and the ten-year is holding above 4.5%. Once yields begin to fall, gold is expected to move higher.”
Aside from the Federal Reserve and physical demand for gold, there’s also another factor at play: the Israel-Hamas war. With the whole of the Middle East now under a microscope, safe haven demand could surge and act as a catalyst to drive gold prices higher, as we saw in the aftermath of the Russian invasion of Ukraine.
Don’t wait for those increases to set in. Buy gold now.
