If you’re all caught up with this week’s Wednesday bulletin, you’ll know that the latest inflation data from the USA has painted a positive picture just in time for the festive season. This has given fresh hope that the Federal Reserve will rule out further interest rate increases – an expectation that has sent the U.S. dollar into a tailspin and given the gold bulls a fresh surge of forward momentum.
During trading yesterday (Thursday) gold prices climbed to a 14-day high, while the greenback showed continuing signs of faltering. With thoughts now turning to springtime rate cuts, this is an important development for anyone considering adding gold to their portfolio. As well as the prospect of rate cuts (something which unequivocally favours higher gold prices), the struggling U.S. dollar also tampers down Treasury yields, further creating demand for gold.
With the stars aligning for the yellow metal, prices are just a few points shy of the strategically important £1,611 ($2,000) per ounce marker. Don’t wait for that milestone to hit the rear view mirror. Buy now before prices rise further.
