As gold prices hover around $2,650 an ounce while the precious metals market fends off a short-term pullback, one well-known commodities analyst suggests the U.S. presidential election scheduled for Nov. 5 will further propel prices to new all-time highs.
Jeff Christian, a well-known CPM Group analyst who has followed the markets for decades, believes the resistance in the gold and silver markets has been caused by short-term profit-taking that will likely subside soon.
Gold prices have traded relatively flat for about a month. (Source:TradingView)
“Prices have come off of the $2,700 December futures mark,” he said. “We thought any such profit-taking would extend through this week, and by this week, we would be in a run-up election mode where we would see more pressure on prices.”
Forget the noise
The downside, Christian said, is very limited, with his group expected a drop of, at most, $40 to $60 an ounce in gold and a similar percentage move in silver.
“There are more signs that say a recession may be coming later rather than sooner and less severe than it is,” he said. “Forget the demagogues waving their arms saying the U.S. economy will collapse — the economic data is better, inflation figures are coming down, interest rates will be coming down and all of that kind of suggests a stronger economy, and a stronger economy suggests stronger gold prices.”
Winners getting skittish
Christian estimated that most investors who have been successful in recent years, thanks to the world’s decadeslong bull run in equities, may start looking to gold and silver to stave off exposure to an economic downturn.
“As you extend the economic recovery in place now for four years, people who have a lot of profits in stock and bond investments are increasingly nervous and looking to diversify their portfolios by adding gold and silver,” he said. Augusta Precious Metals $0 (10 Years) $50,000 "Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings Goldco Vary $25,000 Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee American Hartford Gold Vary $10,000 American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..Expand Details
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