Recap on my position on the GOLD (GC) that I have in my portfolio with the physically replicated ETC XAD1 on the Frankfurt stock exchange.
From WS Italy:
Ole Hansen, Head of Commodities Strategy at Saxo Bank, said:
“Overall, we expect a favorable 2023 for the gold market, supported by recession and equity market devaluation risks: an eventual peak in central bank rates combined with the prospect of a weaker dollar and inflation that does not return to the expected level of less than 3% within the year. Furthermore, the de-dollarisation observed by several central banks last year, when a record amount of gold was bought, looks set to continue.
As often happens, the market has already “discounted” even if specifically it would be better to say “appreciated” what happened in the previous months, the threat of recession, and above all the recent banking crisis of SVB and Credit Suisse (imminent acquisition by UBS).
All in all, I think it’s time to rebalance a position in profit of almost 10%.
I will take home part of the profits, aware of the fact that, as said by the analyst, gold could still go up. We are not talking about an index, but a commodity, which has historically exceeded 2000$ an ounce and has even dropped significantly.
I sell part of the position waiting for better times for other purchases.
As always, I leave you with Warren Buffett‘s quote: “We simply try to be afraid when others are greedy and to be greedy only when others are afraid”
Keep moving forward!
Happy trading
Lazy Bull
From WS Italy:
Ole Hansen, Head of Commodities Strategy at Saxo Bank, said:
“Overall, we expect a favorable 2023 for the gold market, supported by recession and equity market devaluation risks: an eventual peak in central bank rates combined with the prospect of a weaker dollar and inflation that does not return to the expected level of less than 3% within the year. Furthermore, the de-dollarisation observed by several central banks last year, when a record amount of gold was bought, looks set to continue.
As often happens, the market has already “discounted” even if specifically it would be better to say “appreciated” what happened in the previous months, the threat of recession, and above all the recent banking crisis of SVB and Credit Suisse (imminent acquisition by UBS).
All in all, I think it’s time to rebalance a position in profit of almost 10%.
I will take home part of the profits, aware of the fact that, as said by the analyst, gold could still go up. We are not talking about an index, but a commodity, which has historically exceeded 2000$ an ounce and has even dropped significantly.
I sell part of the position waiting for better times for other purchases.
As always, I leave you with Warren Buffett‘s quote: “We simply try to be afraid when others are greedy and to be greedy only when others are afraid”
Keep moving forward!
Happy trading
Lazy Bull
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