Gold prices are set for another surge higher to perhaps as high as $1340.00/oz according to analysts at Shenzhen, China-based brokerage, Global Sun. Prices for immediate delivery had advanced to an intraday high at 1306.00/oz on Monday buoyed by robust investment appetite and a weaker US dollar but prices have pulled back as investors take profits. Gold has risen by as much as 21% since the start of the year and deepening uncertainty over the timing of future US interest rate hikes have seen appetite for the metal increase as a result.
“At the tail-end of last year, you couldn’t give gold away so bearish was sentiment towards it,” said Steven Aaron, Vice President at Global Sun. “That negativity has given way to a new bullishness brought on by broad-based skepticism over the number of times the US Federal Reserve will raise interest rates this year.”
The Fed has already scaled back the number of rate hikes it expects to make this year from 3 or 4 to just 2. Despite frequent comments from more hawkish Fed officials suggesting that a hike could potentially come in June, many investors are betting the central bank will put it off until September.
Global Sun warns that, while higher prices are on the cards, they are unlikely to rise in a straight line. “There will invariably be pullbacks in the price that will dissuade some but longer term investors will have their patience and perseverance rewarded,” said Aaron.
About Global Sun:
As a fiercely independent investment and wealth management concern, our practice is based on the delivery of bespoke counsel that aims to preserve capital while taking timely advantage of opportunities for profit that manifest themselves within the global financial markets. Our independence means that we are not beholden to any product provider/s or group thereof nor do we solicit or accept inducements to recommend the products of one provider over those of another. This has enabled us to eliminate conflicts of interest that may, left unchecked, work against our clients’ objectives.
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