There’s still plenty of time to invest in gold.
Sure, the metal ran from about $2,000 to $2,407 so far. But there’s still more upside.
For one, with the latest CPI data out, investors are increasing their bets the Federal Reserve will start to cut rates, possibly by September.
Two, central banks are still aggressively buying gold, “adding 290 metric tons of gold over the first three months of the year, the strongest start to any year on record,” as reported by Morningstar.com.
“China’s central bank added 27 tons to its gold reserves, its 17th consecutive monthly increase, helping lift its reported gold holdings to 2,262 tons. Elsewhere, the Central Bank of Turkey bought a further 30 tons, India added 19 tons, and the National Bank of Kazakhstan 16 tons, among others,” they added.
Three, as gold buyers seek safe-haven protection against inflation, sky-high volatility, and heightened geopolitical risks, gold prices could push aggressively higher.
In addition, heavy hitter analysts say gold is heading higher.
Goldman Sachs is referring to gold as an “unshakeable bull market” and revised its price target on gold from $2,300 to $2,700 by the end of the year.
However, according to Citi analysts, gold could test $3,000 in the next six to 18 months – especially with flaring tensions in the Middle East. In fact, should we see another flare-up, we could see even more buying interest in the metal.
According to Ed Yardeni of Yardeni Research, gold could see $3,500, suggesting that inflation trends could send gold to higher highs.
Those are all key reasons to continue investing in gold.
