Now is the time to invest.
It is an exciting phase for the gold market. In the early hours of December 4, 2023, the troy ounce of gold climbed to a new record high of 2,135 US dollars (1,963 euros). What could have caused this rise? Well, it seems that economic anticipation has played a key role since October. Experts have pointed to hopes that interest rates in the United States may have peaked.
But what exactly does that mean for potential investors? Let's break this down. The prospect of the Federal Reserve (Fed) cutting interest rates for the first time in the coming months, especially if inflation continues to fall, is a remarkable event indeed. Such a financial landscape makes gold an attractive investment.
Gold has its own allure. It has no current income like bonds or stocks, but that doesn't detract from its appeal. Why? Because in times of falling interest rates, the disadvantage of a lack of interest income is less significant. In this context, gold definitely becomes more attractive from an investment perspective. But that's not all. One of last week's highlights was the speech by Jerome Powell, head of the US Federal Reserve, which further fueled investors' interest rate expectations. Although he emphasized that the central bank is prepared to raise interest rates even further if necessary, he also indicated that monetary policy is already quite tight.
Against this backdrop, the US labor market data due to be released this Friday is shaping up to be a factor of crucial importance. It serves as an important indicator of the strength of the economy and inflationary pressures - two aspects that are central to the Fed's monetary policy.
Now may be the right time to consider entering the gold market. With interest rate expectations forecast to fall, the attractive nature of gold and the labor market data coming our way, investing in gold could prove to be a wise and safe choice.
So if you're thinking about where to invest your money, gold could be the safe haven you're looking for. Don't hesitate to expand your investment to gold and enjoy the benefits of this solid form of investment. Get in touch with Novem. We will answer all your questions.