Gold is Likely to Continue Higher
Sincere greetings to Gold believers. Yes, I have a fair share of almost 15% for Gold in my portfolio, and also my "truck" honked my readers on a mark of around $2000/oz in early December that Gold was still worth its future hike to fresh all-time highs. So, I am happy, as it is still rising alongside continuing anti-cash moves by hedge funds and many private investors. However, you know that I am rather a stock market believer, especially when we talk about mid-term "speculative investments" in growth stocks, as it usually has a potential of bringing more profit compared to an old-school tradition of placing each and every extra penny into yellow metal.
For the last 12 months, Gold prices were growing even a bit faster than the S&P 500 broad barometer of Wall Street. Gold spot (XAUUSD) just came from a $1925/oz area (April 1, 2023) to nearly $2265 (+17.6%), vs another slow but steady upside road by the S&P 500 futures, which shifted from a 4,550 points area to about 5,225 points (+14.8%) during the same period.
Certainly, those numbers cannot be compared to dozens or percent, if not sometimes hundreds of percent, in AI-related businesses. Yet both Gold and S&P proportional investments provided double-digit percentage income over the past year, and would supposedly continue to perform in the same manner soon. Buying and holding Gold assets remains to be a preferred method of parking crowd's money compared to deposits or bonds nominated in U.S. Dollars, Euro and any other major world currencies.
Though, prices on Easter eggs increased substantially more than gold. So costly for the poor Easter bunny's budget. If eggs would not be a perishable product, then I would prefer eggs or other food investment, maybe, ha-ha. Yet, all of us need some more or stable asset to pursue inflation, and e-Gold is exactly this sort of thing. Thus, even assuming that some moderate pullback in Gold would be possible to fix profit by some part of the market, investors still foresee rate cut decisions by the US Federal Reserve and the European Central Bank. As a direct consequence, bond yields and money return from banking deposits would decrease. This and current uncertainty in EURUSD trends provides key advantages to Gold trading, as well as going on with stock portfolio investments. At least, keeping an eye for autumn, if not for the nearest 3-4 months period.
I feel Gold will continue to be of additional interest to investors in proportion to their increase in stakes on the stock market. Therefore, the further growth of the S&P 500 will be on hand for climbing gold prices higher, and not vice versa, while chances for stock correction is also a risk factor for Gold. A sharp corrective move in Gold may later coincide in time with a similar corrective slide in the S&P 500, but when would it happen? No one knows, but it's unlikely to take place in the very near future. Besides, as long as food and gasoline don't get cheaper, why should Gold get cheaper as a means of chasing inflation? I feel it is wrong when Gold assets are rising more slowly than your everyday food. Otherwise, it's a safe haven that doesn't work.
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