Has Gold Peaked, Or Is There Plenty Of Upsided to Come?
What a great run gold has been on lately. Since the beginning of the year, gold has shot up over $200 an ounce. The lackluster global economy is the prime reason. With interest rates here in the US not likely to be raised much in 2016, and with some central banks going negative on their rates, gold is all that shimmers.
But has it hit it’s recent peak? Is there still more upside?
These are questions that eveyone would love to have the exact answer for. While we cannot say for sure what will happen with gold, it sure looks like the chart is telling us there is indeed more upside.
From the chart we can see the long term downtrend that began in mid 2013 has been broken to the upside last month. This trend, almost 3 years running, has finally been changed. With economies in the state they are, there is a good chance a new uptrend begins. So where does this put investors in gold (and silver)?
Well, if the trend does indeed continue upwards, we could very well see gold trying to top $1,400 an ounce this year. If this does happen, it would make a whole lot of folks very happy. While the chances of gold hitting its 2011 highs this year are practially nill, there does seem to be some good opportunity here.
According to a recent Bloomberg story, “Georgette Boele, an ABN Amro Group NV strategist and third-most accurate precious-metals forecaster tracked by Bloomberg in the fourth quarter, said gold is more likely to reach her year-end estimate of $1,300 after the Fed’s statement.
“I think we have seen the low and the momentum is up,” Boele said in an e-mail. “My forecasts may be too conservative.”
Although the Fed continues to tell us that rate hikes are in the plan for this year, the simple matter of truth is, our economy cannot handle it. With foreign central banks going to zero or negative rates, the US Fed can literally sit back and let them do all the interest rate work without having to stall our weakly growing economy.
So while gold prices are very likely to continue to be volitile, there should still be some upside potential for this year. Until the worlds economies are in better shape, people will continue to flee to gold. Have a great day.
Caesar’s Financial Daily is not registered as investment advisers nor as a broker/dealer with either the U. S. Securities and; Exchange Commission or any state securities regulatory authority. Users of their website are advised that all information presented therein is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user’s particular investment needs or objectives. Furthermore, such information is not to be construed as an offer to sell or the solicitation of an offer to buy, nor is it to be construed as a recommendation to buy, hold or sell (short or otherwise) any security. All users of the website must determine for themselves what specific investments to make or not make and are urged to consult with their own independent financial advisors with respect to any investment decision. All opinions, analysis and information included on these websites are based on sources believed to be reliable and written in good faith, but should be independently verified, and no representation or warranty of any kind, express or implied, is made, including but not limited to any representation or warranty concerning accuracy, completeness, correctness, timeliness or appropriateness. In addition, we undertake no responsibility to notify such opinions, analysis or information or to keep such opinions, analysis or information current. Owners, employees and writers of and for Caesar’s Financial Daily may have long or short positions in securities that may be discussed on this website. All materials presented, editorial, advertising, linked websites or otherwise are for informational and/or opinion only and cannot be construed as advice to any individuals or groups.