Gold prices continued their upward trend on Friday. With the shiny metal surging above $2,400, analysts and traders are wondering how high gold can go in the current environment.
Gold’s latest move is a continuation of a broader rally!
cryptokoin.comAs you follow from , US CPI came below expectations. This increased expectations for interest rate cuts from the Federal Reserve. After this, gold started a strong rally. The shiny metal closed last week near record highs above $2,400. Adam Button, head of currency strategy at Forexlive.com, says this latest move is a continuation of a broader rally. He also notes that this rally is driven by the same source.
“This rally started in China, and China continues to assert itself,” says Button. He adds that the latest data shows that Türkiye and much of the Middle East are also purchasing gold bullion. Button notes that this week’s meeting between Russian President Vladimir Putin and Chinese Prime Minister Xi Jinping was also very positive for gold prices. In this context, the analyst said, “If you are a gold bull, the picture of Xi and Putin embracing is as good as it gets. They are trying to create a multipolar world. “You can’t do this if you trust the dollar.” says.
Market participants are turning to gold and precious metals!
The combination of high inflation, massive debt issuance and central bank money printing is pushing market participants into precious metals and other commodities, says Sean Lusk, co-director of trade hedging at Walsh Trading. In this regard, Lusk makes the following statement:
We printed a lot of money and now you see the result. Where are they putting all this money? In addition to buying dips in stocks, big money is going into metals to hedge against inflation. Not just us, economies around the world are doing the same thing. They are increasing their presence and no one knows where they will be.
There could not be a better situation for gold prices to rise!
Sean Lusk says he can’t imagine a better situation for gold prices to rise. “This is the perfect storm for an uptrend,” the analyst said. You have geopolitical concerns. There is a pandemic. So what does our government do right after this? says. He then makes the following assessment:
It’s printing more money for all these financing projects that haven’t even started yet. Now you’re in a campaign year, so all this stuff with gold creates more uncertainty on the back end, and that’s why you keep running here. It goes back to the old adage that whenever we create more of something, it becomes less valuable.
We will probably have a very hot summer!
Sean Lusk says the entire commodity complex was on fire on Friday. He also notes that he expects precious metal prices to rise throughout the summer. The analyst said, “We are at $2,410. We reached the highest level again. Silver caught fire here. Copper caught fire as an industrial metal and platinum. “It has truly been an amazing journey.” says. In this context, the analyst makes the following comment:
You could argue that crude oil is underperforming, yet it’s up just over 10 percent for the year, nothing crazy. But if this situation continues, it will pull everything else up. We will probably have a very hot summer.
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