Gold Prices Aim for Worst Month Since June 2021 As Retail Traders Boost Lon
Gold Prices Aim for Worst Month Since June 2021 as Retail Traders Boost Lon
As investors continue to be squeezed by an economic and monetary backdrop that has already been one of the most challenging in decades, safe haven and capital preservation assets such as gold and silver have gained appeal. These assets offer diversification, protection against currency devaluation, and the ability to protect wealth against a potential stock market crash.

With a global economy increasingly susceptible to synchronized recessions, the Fed will likely be forced to hike interest rates more aggressively than previously expected. As a result, the opportunity cost of holding gold will increase, said Carlo Alberto De Casa, external analyst at Kinesis Money.

This will make it more expensive for gold to attract buyers and keep them on board, as higher interest rates discourage the purchase of a non-yielding asset such as gold, said Craig Erlam, senior market strategist at OANDA.

In addition to the rising rates, gold’s price has also been weighed down by the stronger dollar. As a result, gold has fallen 5% so far this month, according to Bloomberg data.

While many investors are hesitant to invest in gold, a large number of people hold the precious metal as part of their portfolios. These shrewd investors understand that the metal’s price is driven by demand, rather than supply.

There are a few things you should know about gold before deciding to buy the precious metal, including its volatility and best time of year to make purchases. If you are interested in buying gold, it is typically best to wait until January or late June, based on the historical data.

It is important to note that although silver’s volatility is greater than gold, its best price of the year historically is in early January and March or April, respectively. However, it has never revisited its January lows (and there were certainly years when silver did).

If you have long-term plans to invest in the precious metals, it is critical to know which periods of the year are the best times for you to buy and hold. Ultimately, you want to be fully positioned in both metals this year before August, as the metals are more likely to strengthen in the next three months than decline in the first half of the year.

This may sound like a daunting task, but our new Metals Pro service is designed to help you navigate the daily, weekly and intraday movements in gold, silver, copper and platinum. It features detailed analysis of the key events that affect these markets, along with objective paths of least resistance.

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