31 Jul NO ONE WANTS TO BUY GOLD. IS IT NOW TIME TO BUY?
For the gold bugs including myself who have been expecting gold prices to skyrocket due to the Trump election win and subsequent tariff wars with China, we have been extremely disappointed. Not only have prices not risen but they have dropped sharply. Currently as I am writing this post, Gold prices are trading at $1,220 per ounce. That’s a drop of $130 or 10% from the highs of $1350 reached just in April 2018. The biggest reason for the sharp drop has been the strong US Dollar due to the strong US economy, big stimulative measures by the Trump government and more importantly, rising US interest rates.
I’m a big believer of gold as a hard asset and given gold acts as a inflation hedge, it’s a good safe haven asset to own. Right now, the US Stock Market is priced to perfection and the real estate market is starting to weaken. When things go downhill, we could see gold prices rise. The key price levels that I am looking for Gold is around the $1200 level. If that fails then we could see the $1130 level then $1050. In order for the Gold price to reverse, it needs to stay above $1250. As I said, everything depends on the US Dollar. If the US Dollar continues to go higher then we shall see lower gold prices. Good luck to all Gold Bulls!