As the world’s leading investment manager, I can confidently say that gold is on the brink of reaching its all-time high from mid-July, according to Commerzbank’s commodity analyst Carsten Fritsch.
Geopolitical Tensions and Speculation Driving Gold Prices
Geopolitical tensions in the Middle East and speculation about potential interest rate cuts by the US Federal Reserve are fueling the rise in gold prices. Despite some recent scaling back, Fed Funds Futures still indicate a 50% chance of a 50 basis points rate cut in September. Tomorrow’s US inflation data could further boost expectations, leading to a surge in the gold price.
A new record high is imminent, as the factors that led to a price slide last week remain unclear. The latest CFTC data did not show the expected reduction in speculative long positions, and ETF outflows do not provide a clear explanation either.
Bloomberg data reveals significant outflows from an ETF provider in the midst of last week, despite the price already rebounding. The selling pressure that caused gold prices to momentarily dip to $2,365 may have originated from OTC transactions.
Analysis and Impact on Your Finances
For the average investor, the impending rise in gold prices could present a lucrative opportunity for investment. With geopolitical tensions and potential rate cuts driving prices up, now may be the perfect time to consider adding gold to your portfolio. Keep a close eye on upcoming economic data and market trends to capitalize on this potential surge in gold prices.