Gold is one of the oldest and most reliable safe-haven and hedge against inflation assets, and lately, its price has been steadily climbing due to increased demand. Recently, world-renowned commodity expert David Morgan shared his thoughts on the potential gold breakout and whether it is a real phenomenon or just a fake-out.
According to Morgan, two primary factors are causing the rise in gold prices. The first is the US dollar’s lack of stability in the international market and the second is the increased demand for gold from central banks across the world. For the past decade, the US dollar’s full reserve currency status gave it a great amount of strength, but recent turmoil has shaken that status. Meanwhile, central banks have been purchasing gold as a means to diversify their reserves away from the US dollar. This in turn has put additional upward pressure on the gold price.
However, Morgan also believes there is a risk of gold prices going up too far and too fast. As the chief strategist of the Silver and Gold Team, he warns that gold is forming a parabolic peak, which could signal an imminent correction. He further cautions that gold prices could see an abrupt downturn if the Fed starts raising interest rates again, which could challenge the current bull market.
Overall, Morgan advises taking a wait-and-see approach. Gold investors should carefully monitor the trend for any signs of a breakout or fake-out, and should remain cautious when considering investments. Whether the current gold rally is a breakout or a fake-out remains to be seen, but investors should proceed with caution. With all this said, gold remains a resilient asset with a record of providing reliable returns and hedging against inflation. Investors should keep this in mind when deciding their long-term strategies.
“David Morgan: Will This Gold Price Rally Stick Around or Fizzle Out?
