ANALYSTS SAY THE BULL MARKET STILL ON FOR PRECIOUS METALS

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Bull markets are perceived differently by investors focused both on the long term as well as the short term. In 2019, gold entered a bull market after exiting basing channel at $1,370. Before that, the metal was trading for a little below $2,000 in 2011 and fell to $1,200 in 2013. After this, the metal entered a new channel in 2014, before exiting it once more in 2020. Analysts now reveal that the long-term outlook for precious metals such as silver and gold is positive, despite the recent decline in the price of precious metals in August last year.

The current prices of both precious metals were in the consolidation phase, given that silver usually follows gold. Some Wall Street professionals note that long-term bull markets usually get interrupted by sideways price action after considerable rallies. The bull market’s resumption is dependent on how the political environment and the economy changes, both internationally and domestically. It is expected that between 2023 and 2025 we will see an increase in the prices of silver and gold, even setting new records. This would mean a significant rally for both metals, which were going for approximately $22.40 and $1,750 per troy ounce respectively. The record levels for the metals were greater than $2,000 and more than $50.

The silver rally could be far stronger in comparison to the increase in the price of gold. The interest rates are likely to stay stagnant for the next 10 plus years which historically is really bullish for the precious metals. These low-interest rates could discourage some of the equity investors, which will cause most to ditch their holdings in gold in support of fixed-income securities.

However, other analysts expect the falling U.S. dollar to continue trending lower this year, which should be good for the price of gold. Any investor who would like to benefit from the future rally should consider accumulating silver and gold bullion on price dips.

This article is published with the special permission of CPM Group. For more views and news you can visit https://www.cpmgroup.com/


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