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Keep Your Eyes On Gold Prices Heading Into October

These big market moves have presented savvy traders with a series of highly lucrative opportunities to profit from the recent macro-driven rally as well as the huge price reversal that has subsequently followed.

Is the rally over and has all the money been made?

Not by a long shot!

Right now, Gold prices are spending very little time below the key psychological level of $1900 an ounce, which ultimately suggests that there’s still plenty of upside ahead.

Once you step back and take a look at the bigger macro picture that is currently unfolding, you’ll see the stars are aligning for gold.

Less than four days before the United States government faces a potential shutdown – U.S national debt has surpassed an historic milestone of $33 trillion for the first time ever.

Put another way, that’s $14.3 billion being added to U.S debt per day. Add on another $3 billion per day of interest payments and that’s well over $17 billion per day.

Under normal circumstances, this might not be that big a deal, but these are not normal circumstances.

According to economists, the timing of the government shutdown couldn’t be worse and may lead to a sequence of catastrophic consequences for an economy already faced with surging gasoline prices, autoworker strikes and re-accelerating inflation – with some saying it could even increase the possibility of another “black swan event”.

On Monday, Moody’s rating agency warned that the U.S will be slapped with a “negative credit rating” if a government shutdown were to occur.

Back in August, Moody’s rival Fitch Ratings downgrading the U.S credit rating from AAA to AA+ due to successive government standoffs over the nation’s debt ceiling. A move which sent precious metal prices skyrocketed to multi-month highs – with many notching up spectacular double digit gains – literally in a matter of days.

Right now we have crisis on top of crisis, which as traders know – translates to opportunity on top of opportunity. While precious metals certainly don’t need a crisis to move higher, they definitely love a crisis!

Whichever way you look at it, one thing is clear. The case for precious metals in a well-diversified portfolio has never been more obvious than it is right now. Any substantial pullbacks should be viewed as buying opportunities because prices won’t stay low for long!

Gold Price Forecast

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions:


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Wealthfargo
Wealthfargo

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