It looks like the bull run’s two-month-long streak of solid gains is over. Consolidation could be a good thing, even though some might be disappointed at the market’s resistance just before it hits $2,000
Don’t be discouraged, though, because gold has achieved some significant achievements during this bull run. As prices reached resistance at $1,940 per ounce, gold entered into a technical bull run, increasing 20% over its November lows.
This month’s market gain is approximately $100, which is the best start to the year in 2012 since 2012. Despite the market’s modest gains this week, it is up about $100, its best start to the year since 2012.
Gold rose to a new record against the Japanese yen, outside of the U.S. Analysts are beginning to predict record-breaking highs for the U.S. Dollar as gold rises in all currencies.
It’s clear that it’s been a busy week for precious metals. Maybe it’s time to take a break. A consolidation or short-term correction will have the most important benefit for investors who have been ignoring gold most of 2022. It will allow them to get back in the market.
Kitco News has heard this week from analysts that this is one of the most quiet bull markets in recent times. The market for gold-backed exchange traded funds has been weak at best, and speculative positioning has fallen well below its highs considering the current price.
Although gold may be in for a correction soon, there are many reasons to believe that its bullish uptrend will continue. People are paying attention. The largest Swiss federal pension fund announced this week that it would increase its gold exposure by 1%. After their precious metal investments experienced gains of 0.06% last fiscal year, they decided to increase their gold exposure to 1%. This is in addition to outperforming bonds and stocks which were firmly in the red.
The most detrimental effect on bonds in 2022 was their negative impact. They contributed -6.3 percentage points to -9.6% consolidated total return, returning approximately -12%. According to the fund, Equities contributed -4.1 percentage point.”
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
