The impact of the war in Eastern Europe continues to be felt around the world and disrupts commodity markets. Earlier in the week, the International Monetary Fund (IMF) warned that the war would lower global growth prospects and raise consumer prices. Meanwhile, although gold prices are down slightly, some experts point out that there are still several reasons why gold should be kept in the portfolio. Here are the details…
Strategist: Long-term investing in gold makes sense
There are many reasons why investors should keep the precious metal in their portfolios even as prices begin to fall, as the IMF has indicated that the war will dampen global economic growth prospects. “You don’t know when the next geopolitical event will be,” said Kristina Hooper, chief investment strategist at Invesco. “You don’t know when the next threat of inflation will hit, so it makes sense to invest long-term in commodities and gold.”
Many analysts pointed out that rising inflation remains the biggest reason investors hold some gold. Some analysts suggest positioning between 10-15 percent in the precious metal. Adding to the bullish sentiment in gold is the fact that the FED has announced a clear monetary policy plan. Many analysts noted that gold traditionally performed poorly before a new tightening cycle but rose higher once the path was determined.
Gold prices will focus on inflation
Therefore, we can see the underlying strength of the gold market, according to Kitco’s Neils Christensen. cryptocoin.com As we have previously reported, the FED has announced that it may raise interest rates seven times this year. Despite this, prices managed to hold support above $1,900 per ounce. Inflation is the biggest reason why gold is able to withstand the Fed’s new tightening cycle. The latest CPI figures showed that annual inflation increased by 7.9 percent in February. George Milling-Stanley, chief gold strategist at State Street Global Advisors, used the following statements:
If the Fed actually implements its plan to raise interest rates to 1.75 percent by the end of the year. Interest rates will remain below 2% this year. I don’t think the markets have much to worry about. Now that we know what awaits us for nine months, we will focus much more closely on inflation figures.
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. For this reason, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.