We may only just be reaching the midway marker for March but it’s fair to say the third month of the year can only be characterised as being scorching hot for gold prices. However, while we have seen gold hit highs of around £1,721 ($2,195), these gains now look to be just the tip of the iceberg, with significantly more to come from the bulls.
One industry analyst is firm in his belief that we’ll see a rapid acceleration in gold prices from here on out, with the £139 increase in March set to pale in comparison to how much prices are expected to spike across the next few months.
Midas Touch Consulting managing director Florian Grummes projects a price high of £1,987 (+17%) by the summer. This bumper price level will be possible even allowing for short-term dips enroute he says, noting that recent price levels have seen the gold bulls smash through the end of a correction and consolidation phase that has lasted more than a decade. This is now a new era he says, and it has a clear upwards trajectory.
“Regardless of short-term pullbacks or interim consolidations, this likely signifies only the beginning of the next major uptrend in the precious metals sector,” he commented. “It can be assumed that after the two-and-a-half-month consolidation, the ongoing rally is unlikely to end after just three weeks. In case of doubt, the new uptrend may continue swiftly but with volatility.”
As an investor, the prospect of likely short-term pullbacks is good news as those dips create an opportunity to buy at a more favourable rate before further gains drive prices higher.
Grummes believes that gold prices will soon be boosted by a swell of safe-haven demand as equity markets falter and the economy risks falling into recession.
“Overall, the macroeconomic environment remains highly favourable for the gold price,” he concludes.
With the bulls quickly asserting their dominance in 2024, you can’t afford to wait for the summer highs to hit. Buy now.
