After putting together an impressive string of gains recently, the gold market has pulled back a bit as stocks attempt to regain their footing. Weakness in key data points recently has renewed investor hopes for a rate cut from the Fed, and some analysts are now calling for a series of cuts.
The stock market appears to have entered a phase in which bad news is good news, and the Federal Reserve may once again have to turn on the easy money spigot to keep the market from falling apart.
Regardless of what stocks have done in recent weeks, the gold market has been setting up for what could be a major upside breakout. For the better part of five years now, the market has seen resistance around the $1,350 level, an area that has been tested several times already. The market has not backed off too far from this level, however, and has continued to make higher lows in the process.
The $1,350 level could signal a major turning point for the metal. The importance of this level could set the stage for a rapid and significant rally higher that could see prices move up by several hundred dollars per-ounce in a short period of time.
Not only is the technical posture of the market increasingly encouraging, but the fundamental outlook is strong as well.
An aging economic expansion, increasing risk of recession, the ongoing war on trade and the potential for a weaker dollar are all solid reasons to be buying gold right now.
These situations are not going to be easily resolved, either. The war on trade is in full swing, and thus far there does not appear to be a deal in sight. With less ammunition to fight it, the Fed could find itself having to resort to unusual measures to combat the next recession. The ongoing U.S. debt crisis will at some point need to be dealt with as well, and the government could have no choice but to ultimately debase the dollar. Not only that, but other countries have already begun a move away from the dollar as the global reserve currency of choice, and if such a move continues it could have a significant impact on the value of the currency.
In other words, there are a lot of reasons to buy gold right now, so what are you waiting for? With compelling fundamentals and an extremely bullish chart, now is the time to act.
Adding this key asset class to your portfolio has never been easier. Simply pick up the phone and speak with an Advantage Gold account executive today. Our associates are here to answer any questions you may have and can even show you how to build a significant allocation in gold using an IRA account.
Don’t wait for the next major economic recession to take hold or for stocks to see massive declines before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.Tags: global reserve currency, gold market, rate cuts, risk of recession, war on trade, weaker dollar