When markets opened at the beginning of this year, many traders were enthusiastic about the future. There was a lot that happened in the run up to the Christmas holidays which would affect the lull in the gold price. Because of low market liquidity, gold had been trading on a narrow margin. But this is about to change.
In the first week of 2021, gold opened with massive gains. It generated a 1.55% on the first Monday of the year. This was a great time to Sell Gold jewellery for a great return. However, the sentiment surrounding gold his still as skewed as it was at the end of 2020. The falling dollar continues to represent the determinants of the direction the market is likely to take.
There is a probability of volatile gold price swings. This will be bolstered by the US post-election shenanigans and the unemployment and manufacturing numbers released in the first few weeks of the year.
In the short term, it looks like this popular safe haven asset will be affected by bullish bias. However, the market has been skewed toward high-risk, high-yield investment assets. Because of this, the gold price could take a new direction. Investors should take some time to look at the likelihood of gold taking a dive.
Long-Term gold price outlook
Since August 2020, the gold has been trading low. There is a high probability that the gold price could continue depreciating in the short term. However, with the optimism that usually comes with the beginning of a new year, this depreciation might stop in the mid-term. Right now, everybody is waiting for gold to break through the $1927.24 level. A decisive break above that psychological barrier might clear the path for another gold rally towards the next significant resistance level at $1960.00.
So, should you buy gold now?
When you invest in gold or any other asset for that matter, you are taking a risk. The language and all those graphs you will find in investment sites can be bewildering to many. There are a lot experts and gurus out there who will tell you that they know the best time to enter the gold market or to leave it. You can speak to a financial advisor, even get yourself a portfolio manager whose job is to get the most out of the investments you make. Buying gold really shouldn’t be a complicated process. If you have some disposable cash, you can do better by investing it in a safe-haven asset like gold instead of keeping it in the bank. Economies collapse, currencies lose their value and banks can go out of business. Your money is safer in gold than it would be at a bank.
If you bought your gold a decade ago, you probably spend less than $800 to acquire an ounce, a few months ago, the price had gone beyond However, most ordinary folks do not keep assets like gold for decades. People will sell gold jewellery in times of trouble. The last decade hasn’t been that great for most economies. You can tell by the number of gold buying businesses that have mushroomed over the years. Gold is a safe-haven asset that can help you get through the worst economic situations. So, the best time to sell gold is whenever you need to.