Banks aren’t always the biggest proponents of investment vehicles that they won’t benefit from directly. When it comes to the current gold price market sentiment, however, even financial institutions have to admit that the bullish trend is far from over.
US Bank Remains Bullish on Gold
It is commendable to see financial institutions admit that the demand for precious metals will not diminish anytime soon. Particularly among investors and speculators, gold remains a top priority. It is a safe haven asset during times of financial instability. Banks now admit that this instability may remain in place – or even grow worse – for some time to come.
According to US Bank Wealth Management, the current trend will remain bullish. More specifically, their analysts are convinced that last week’s 3% gain was no fluke. Instead, they expect that more investors will take money out of stocks in favor of more appealing assets such as gold and silver.
More specifically, the bank expects a “bullish longer-term trend” for precious metals. This is a conclusion drawn by looking at the market sentiment over the past few months. Despite ongoing market pressure for stocks, bonds, and treasuries, precious metals have retained their value with relative ease.
Additionally, US Bank confirms that future inflation due to stimulus packages remains a very real and tangible threat. Combined with low interest rates, the support for this bullish gold trend is coming from central banks directly. Their actions will force investors and households to look into precious metals in an effort to retain purchasing power.
The US Economy is Wobbly
All signs point toward a very rough road ahead for the US economy. Not only is the Fed printing money without limitations, there is also a growing fear over deflation affecting consumer prices. Furthermore, declines in transportation, lodgers, and energy are also likely to occur.
For the average US consumer, this is excellent news. Spending less money for all of these services and products is beneficial. However, that extra money will not necessarily be put into the US economy again. Instead, it gives an opportunity to invest in assets that truly matter, such as gold, silver, and cryptocurrencies.