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.
“Best Overall” by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings
Expand Details
Renowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including “Best Overall” from Money magazine and “Most Transparent” from Investopedia. The company’s dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.
Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee
Expand Details
From precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ years
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
With over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee