Get Ready For Investors Rushing to Buy Gold
Daryl Jackson, News Editor
24 Mar 2017, 1 p.m.
Analysts are predicting an upsurge in the number of investors putting their cash back into gold.
That’s according to Commerzbank analysts who say the fact that the gold price rose to $1,250 an ounce this week is one of the reason why there is renewed interest in the precious metal. Despite reaching that key level, prices did fall slightly lower on Friday.
A team of analysts said:
“Although this psychologically important threshold appears to be posing something of a challenge in the short term, the chances of the price rising above it are good”
Fuelling this is the fact that markets in the US are now unsure if they’ll get the pro-growth policies of tax reform and stimulus that had been promised by President Donald Trump.
Commerzbank analysts say gold has plenty of room to rise further.
"Speculative financial investors in particular are likely to jump back onto the bandwagon: in the run-up to the Fed meeting their net long positions had dropped to their lowest level since the beginning of the year, putting them a good 80% lower than their last summer's high," wrote the analysts. "There is ample upside potential, in other words."