The last few days we’ve seen gold trading below the $1500 mark. Yesterday though, gold’s price dropped just above $1465 per troy ounce.
It seemed as the market was overbought and a number of other issues affecting gold’s price seemed to defuse. Firstly, the Europeans offer to accept a delay in Brexit deal, which helped the pound gain 400 pips. Then, the news from the Fed meeting in September, indicated the possibility of another interest rate cut will be off the table. And last but not least, the trade talks between the United states and China were looking better.
Therefore, the worn out market was not met with great enthusiasm from the investors who were reading that gold at $2000 and silver at $25 was imminent. Yesterday’s gold’s and silver’s performance was a negative surprise for gold investors.
Although, the gold market doesn’t look good, the fundamentals are there for gold to become bullish again. The global recession is imminent, the stock market bubble is real, the European central bank will continue its negative interest rate policy and the Fed will follow with even lower interest rates too.
Gold’s price will go up, but it will not be on a straight line. Gold and silver price might drop even lower, (gold could get as low as 1400) but at the end gold will go up because, the fundamentals are all there. Remember, investing in gold is a long term investment and no investor lost in the long run.