The charts today reveal that the strength of gold this time creates an opportunity for traders who are thinking of cashing out. This year, it was noted that gold has increased by 9%. The metal went on its way up due to uncertainties in the policies of the United States as well as talks about the failure to cancel the Affordable Care Act.
There are statements being circulated that gold is up to a struggle in surpassing the key level thus opposing the asset’s momentum. Renowned market strategists are buying into the strength that gold has now and has even declared that it is a better choice than going with stocks or equities. Besides, gold appears to be in an extended period from a one-month high.
Yet, as the metal is performing at its highest now, there are factions among those alarmed about inflation and market recovery and those that are petrified about the issues concerning the world today. The ones frightened might be those people who got the upper hand – those who have the power and control over the majority.
As the CPM Group puts it into words, the opportunistic generalist investors are making a big comeback after exiting between the period of 2011 and 2012 when the metal had its highest peak in years. At the same time, gold is forecasted to get even stronger as the second half of the year draws closer. The metal’s price is eyed to be $1,300 an ounce. Last 2016, there were a total of 14 central banks from different countries such as Russia, China and Kazakhstan that were net buyers of gold. Central banks are by and large net buyers of gold for years.
Indeed, gold is still a safe haven in case of economic and political distress. Investors who hold on to gold have a higher likelihood of protecting their wealth. Moreover, they can use gold to breakout from the instability. Investors usually buy gold whenever there are news events insinuating uncertainties in the market and around the globe.
Nonetheless, the whole bullion market is alive and rejoicing at this point.
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