For those investors who are keeping part of their portfolio in gold and other precious metals, the lack of market activity may have them concerned. But that seems only the beginning of the issues, as it is expected central banks will push the price of gold down further. Some market pressure has been noted across Europe and Asia already today, although a bounce back occurred later on.
Downward Gold Market Pressure Ahead?
Finding the right type of investment in these troubling times is not an easy task. The majority of investors are looking at whatever options they have left and achieve diversification based on that shortlist. Precious metals, and more particularly, hold, is usually in the top three of available options.
However, there has been a lull in precious metals trading over the past few weeks, as things have quieted down since the Brexit outcome. This was not entirely unexpected, as there is so much going on in the world of finance today. Moreover, there is still a looming uncertainty about the Fed’s interest rates, the Italian banking crisis, and God knows what else.
By the look of things, central banks will be taking matters into their own hands again very shortly. Various analysts point towards an attempt to push the price of gold below US$1,300 per ounce later this week. Keeping in mind how there is a two-day FOMC meeting beginning today, it is not unlikely gold will not see a rally in the next 48 hours.
To top this all off, we are getting close to the end of the month again. Corporations and big investors will square up the books, and a lot of potential buyers are probably already holding on to some precious metals as we speak. One of the possible outcomes would see more downside pressure on the gold market for the remainder of this week.
Plenty of Opportunity To Make A Profitable Investment
None of this means there will be no future uptrends for either gold or silver, though. Unfortunately, the most likely scenario is no significant action will take place until early next week. Then again, this week may present an excellent opportunity to buy gold as the market is rather quiet, and bargains may be scored along the way. Make sure to register your account on Vaultoro as soon as possible to reap the rewards from staying on top of the gold price market.
Do keep in mind that these indicators are just that – an indication. Markets may respond entirely differently all week long, and it is hard to judge in which direction the wind will blow. Several events are coinciding at the same time which could send the price of gold up or down significantly. Either way, an exciting time is ahead for gold bugs!
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