Precious Gold Forecast from the Investment Giant “Hidden Movement”!


While gold seems like an ‘ideal’ asset to own right now, why hasn’t its price ‘bounced’ now? Here are Fidelity International’s assessments of gold’s internal reaction.

Gold’s movement was interrupted by the Fed

Gold has failed to provide a massive always-on rally above $2,000 this year. But what all precious metals need is time, according to Fidelity International, a branch of Fidelity Investments. Fidelity points to the Federal Reserve’s aggressive speech when commenting on what’s keeping gold prices low. Graham Smith, Fidelity’s investment expert, says:

Gold’s movement has been hampered by expectations that the Fed will now be very aggressive to contain inflation. Expectation of further rate hikes in the US increases the relative attractiveness of the dollar on real assets, such as gold, which does not yield. Fewer dollars are then needed to buy an ounce of gold, which lowers its dollar price.

The second pressing impetus was speculation about what Russia could do with its gold reserves, one of the few assets unaffected by Western sanctions against Russia after invading Ukraine. Graham Smith makes the following assessment here:

Given that a valuable part of Russia’s assets are frozen, there is always the possibility that some of the country’s gold (apparently worth about $140 billion) can be sold for payment.

“Long-term gold bulls need not be disappointed”

Graham Smith, referring to the war in Ukraine, China’s economic slowdown, hot inflation and volatile stock market , but says that the investment environment continues to be attractive to choose gold. The expert explains his views as follows:

Gold could appear to be an ideal asset to have. So gold investors have now missed the boat? The response is likely not to disappoint long-term gold bulls. After seeing record inflows in 2020, the gold price weakened last year and hasn’t made a big jump now in 2022. As we have covered in the news , this year gold has been trading twice, once in March and the second time a little over a week ago. once tried to break through the key spiritual level of $2,000. It could not stay above this level on both occasions. At the time of writing, June Comex gold futures were last trading at $1,909, up 0.98% on the day, but still kept under pressure by a stronger US dollar.

Graham Smith: The long-awaited big gold rally is on the way

A positive side, especially when compared to equities and other assets like Bitcoin, is that gold has managed to defend its price and is set to hit the mark in 2022. its growth with an annual increase of 3.6%. Graham Smith thinks the long-awaited big gold rally may still be on the way. The expert states that the price of gold, which is currently just over $ 1,900, has stabilized at least to some extent since the beginning of the year and makes the following statement:

The only thing that gold needs is a little more time. Low returns on equities have made investors uneasy lately, and a random lack of adjustment could trigger shifts to other asset classes. It’s also worth remembering that gold always has the potential to help entice investors when the world puts us in the opposite corner.

Another trigger that could boost gold: Supply drop

By contrast, US stocks are selling for most of April today and Bitcoin fell as much as 13%. Graham Smith mentions that Bitcoin, which is also in the headlines as a store of value, follows a volatile path that is suspiciously similar to the decline of US technology shares, then rises and then falls again.

Among the events that could derail stocks and bonds further, according to the expert, include: rises in interest rates with unpredictable knock-on effects in emerging markets, or another burst of interstate tensions that began, for example, in the South China Sea or Iran.

Another trigger that could drive up gold prices, adds Graham Smith, is the sharp drop in recycling offsetting increases in mineral production, with the reported drop in precious metal supply falling 1% in 2021. The expert explains it this way:

Historically, supply drops (for example, between 2000 and 2008) preceded multi-year bull markets for gold. But there is no guarantee that this will happen again.

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