IAUM - The Gold Breakout Has Only Begun - Fundamental Analysis Of Historic Performance
2024-03-22 04:12:38 ET
Summary
- Gold spot prices have surpassed the previous all-time record of $2194/oz set on March 8th, and are currently trading at $2203/oz at the time of writing.
- Gold prices are currently indicating a bullish pattern where gold prices rise while the Federal Reserve increases interest rates.
- During the bullish pattern, gold prices have historically risen even faster once rate cuts begin.
- Retail investors have been selling gold for almost a year, but the price keeps rising. At the same time, central banks and institutions have been buying.
Investment Thesis
Gold spot prices (XAUUSD) have accelerated upward as speculation about where interest rates will go has intensified. Rate cuts have historically been good for gold in recent cycles and all eyes have been on the Federal Reserve. On Wednesday the Federal Reserve decided to maintain interest rates and reiterated their call for patience, but left the door open for rate cuts later in the year. The market overall including gold liked the outcome, with gold ( XAUUSD:CUR ) jumping almost $50/oz....
The Gold Breakout Has Only Begun - Fundamental Analysis Of Historic Performance