Gold, among the oldest of precious metals, has been a sign of wealth, power, and status for centuries. It has also been an investment for many generations, as it holds its value and can be used to hedge against market volatility.
Recently, gold prices have been on the rise with unprecedented levels of demand seen in the physical gold markets. This demand has been largely attributed to the amount of economic uncertainty associated with the global pandemic.
David Morgan, CEO of LongWave Group LLC, recently weighed in on this trend in a piece published by GodzillaNewz. Morgan claims that gold prices may be breaking out or may be merely in the midst of a fake out.
In his article, Morgan explains that the current rally in gold prices could be a legitimate response to current geopolitical tensions, primarily stemming from the US and China. The trade war between the two countries has made investors jittery, leading many of them to opt for gold as an investment option.
However, Morgan also pointed out that there could be other factors at work. The weakening of the US dollar has made gold more attractive compared to its currency-based competitors. Furthermore, there appears to be a growing consensus that central banks across the globe may be turning towards gold reserves as a hedge against market volatility.
Given the current environment, Morgan believes that gold prices may be poised for a long-term rise, rather than merely a fake out. He pointed to recent moves by major global investors towards the precious metal and hinted that the future could see more of the same.
Gold has certainly become an attractive option for investors looking to mitigate risk in this uncertain economic climate. Only time will tell if gold prices are on the verge of a breakout or if it’s merely a fake out. In any case, it seems likely that gold will remain a valuable asset to investors for some time.
