Here What is Going on everyone wants to know.......Why suddenly bullish & after all bearish?
The price of gold experienced its biggest drop in years on Tuesday, but underlying fundamentals signal more gains ahead.
Gold experienced a ‘flash crash’ on Tuesday after several weeks of massive gains.
The metal is under pressure as the pandemic situation normalizes and stimulus negotiations fall through.
While gold investors face near-term pain, the metal’s bullish long term thesis remains intact.
“The U.S. Treasury Department said Monday it expects to borrow $2 trillion over the rest of the year as the federal government takes on debt to finance the response to the coronavirus pandemic.”
Coronavirus infection rates are falling dramatically around the world– particularly in hard-hit countries like the United States, which has the highest number of infections and deaths on the planet.
In Russia, Putin’s government has approved a new vaccine with plans to start mass production in October. Brazil’s Parana state is in talks with Russia to also produce the vaccine, despite its controversial testing record.
The best news in all of this is that investors have a second chance to get into the precious metals market before prices start hitting new record highs again, which they are likely to do this year and next year. “Correction represents a second chance to get on the gold, silver bandwagon,” writes Melek.
While gold is in near-term pain, its long term bull thesis remains intact.
Bank of America predicts gold prices could reach $3,000/oz within 18 months due to low interest rates and a lackluster economy. They also believe the government will have to resort to more stimulus to keep the economy from flatlining later in the year.
The price of gold experienced its biggest drop in years on Tuesday, but underlying fundamentals signal more gains ahead.
Gold experienced a ‘flash crash’ on Tuesday after several weeks of massive gains.
The metal is under pressure as the pandemic situation normalizes and stimulus negotiations fall through.
While gold investors face near-term pain, the metal’s bullish long term thesis remains intact.
“The U.S. Treasury Department said Monday it expects to borrow $2 trillion over the rest of the year as the federal government takes on debt to finance the response to the coronavirus pandemic.”
Coronavirus infection rates are falling dramatically around the world– particularly in hard-hit countries like the United States, which has the highest number of infections and deaths on the planet.
In Russia, Putin’s government has approved a new vaccine with plans to start mass production in October. Brazil’s Parana state is in talks with Russia to also produce the vaccine, despite its controversial testing record.
The best news in all of this is that investors have a second chance to get into the precious metals market before prices start hitting new record highs again, which they are likely to do this year and next year. “Correction represents a second chance to get on the gold, silver bandwagon,” writes Melek.
While gold is in near-term pain, its long term bull thesis remains intact.
Bank of America predicts gold prices could reach $3,000/oz within 18 months due to low interest rates and a lackluster economy. They also believe the government will have to resort to more stimulus to keep the economy from flatlining later in the year.
