Yesterday, gold was within striking distance of $2800, and whilst it may have pulled back earlier on today on the back of some technical selling, we believe the next week could hold yet more new highs.
The coming days will be pivotal for shaping the future of risk sentiment and consumer and business confidence, both for the remainder of 2024 and beyond. Event risk is significant, we've had the UK budget this week, alongside the upcoming Q3 GDP report and October payroll data in the U.S., scheduled for tomorrow.
Looking ahead to next week, the U.S. Presidential election takes place on Tuesday, with two significant central bank meetings taking place later in the week. Both the Bank of England and the FOMC are expected to announce rate cuts, adding further weight to the economic outlook.
Where does this leave investors? Financial Times research released earlier this month showed that confidence indicators have slid sharply or remain stuck in negative territory, in short "sentiment is the global recovery's weak spot". This is a key reminder of why people buy gold.
So if you own gold and silver already then hold on, and perhaps consider increasing your allocation. But if you are new to gold, and wondering if the price is too high, then stop waiting and jump aboard. Yes, the price has climbed significantly in recent months but with sentiment so low and so many pivotal events on the horizon, now is a very good time to start investing.
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