Analysts at Incrementum AG, a Liechtenstein based wealth management firm are betting that the price of Gold could climb up to as high as $1500.
Bloomberg reports the asset management company that manages $101.5 million cited fundamentals such as political risk and inflationary concerns as a driving force that could propel the price of the portfolio investor’s favorite shiny metal to between $1400 to $1500 in a bull market that is expected to pick up early summer.
The spot price of gold bouillon traded at its highest level of $1400 in September 2013.
Gold has spiked over 9% year-to-date as investors seek a hedge against the uncertainty of the impact which US President Donald Trump’s policies may have on the economy. Broader political risks in the Eurozone, which has major elections scheduled in Germany, as well as Brexit uncertainty still looming.
Ronald-Peter Stoeferle, managing partner at Incrementum believes the rally is around the corner. He told Bloomberg, “The real pick up in momentum might start beginning of summer. It’s in the very early stages of the bull market, so everybody is still kind of cautious or slightly negative, but this will improve.”
Furthermore the Fed is expected to continue to raise rates as it did in March in order to continue to preserve the strength of the greenback. Gold has been resilient recently even as the Fed applied its monetary policy tools to shore up the dollar. Typically the price of Gold usually dips during such exercises.
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