Gold Now and Where Some Analysts See the Precious Yellow Metal Going
Gold has just seen 2 months of lower pricing. That is normal for this time in the year for the metal. What that means is that the best part of the year, the Gold buying season is arriving.
There are a number of ways to invest in Gold, from Bullion and Coins to ETFs and Gold mining and royalty & streaming stocks.
Credit Suisse looks for Gold prices to hit $1,400 oz by Q-4 of Y 2017 as US real interest rates ease and central bankers maintain Dovish with monetary policy.
Looking at the big Gold picture, we have just closed what all agree is a 4.5-year Bear market in Gold. That pushed down the metal’s seasonal performance. Miners are leveraged to the metal price, so mining stocks took the hit.
But the post US election period has seen a new market.
So expect a return to the what is the normal trend, meaning strong periods of outperformance in precious metals and the companies producing them, especially in 2-H of the year.
Here’s the chart for the annual Gold Performance from Y’s 2006 to 2016.
These are averages, by month. So each month shows the average.
As illustrated above, March and April are months when Gold traditionally goes down. Then it historically goes higher in May, with the real run up in Q-3.
This does not mean Gold demand and price is guaranteed to rise in Q-3, but that’s the more likely trend. That along with the recent test of the price ceiling for Gold at about $1260 oz and you have a potentially Very Bullish mix.
Some pundits are calling for 1500 oz and higher.
HeffX-LTN believes that we could see better-than-average performance. That’s all that is needed to see strong profits.
“David Wilson, head of metals research at Citigroup, says that Gold should top $1,300 towards the end of the year as the “Trump reflation trade” reverses and subdued real interest rates, coupled with moderating dollar strength, provide “positive momentum” for the gold price.”
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