A new precious metals outlook published this week has underlined exactly why investors should add gold to their portfolio when prices dip. Analysts from Heraeus have identified a key trend in gold prices and say the gold bulls will storm to substantial price increases in the aftermath of the Federal Reserve making its first round of rate cuts.
Highlighting a pattern that has held true for around 40 years, the analysts say “The gold price tends to rise following the first cut of US interest rate cycles. On average since 1984, one calendar year after the Federal Reserve first cuts its rate after a hiking cycle, gold is 10% higher than the day of the decision to reduce interest rates, and after two years is 18% higher. The dollar tends to weaken, yields on U.S. Treasuries fall, and the economy tends to have deteriorated.”
With the Federal Reserve expected to begin rate cuts next year, now is the optimal time to position your portfolio for success. Don’t wait for prices to rise. Buy now to benefit.
