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Should You Buy The Dip In Gold Now Or Wait?

By:
Phil Carr

After an explosive rally that catapulted Gold to a new all-time record high of $2,152 an ounce – prices have pulled back as trader’s bank windfall profits and get ready to capitalize on the precious metals next big move.

Gold and silver bullion, FX Empire

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There is no denying that these extreme market moves have presented savvy traders with a series of highly lucrative opportunities to profit from the parabolic 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 remain well supported above the key psychological level of $2000 an ounce, which ultimately suggests that there’s still plenty of upside ahead.

The major market-moving event that traders will be watching closely for clues on Gold’s next big move will be the final U.S employment report of the year, due for release on Friday.

There will be a huge focus on Friday’s data, especially since traders have already begun pricing in bigger-than-expected rate cuts in 2024.

Data released earlier this week, showed U.S job openings fell to their lowest level in more than two years in October – another sign of a cooling labour market – reinforcing traders’ bets that the Fed will deliver multiple rate cuts next year.

The job-openings data offers more evidence that the U.S central bank’s efforts to damp demand with high interest rates is working.

U.S businesses advertised 8.7 million job vacancies in October, down from 9.6 million in September, according to the Labor department’s Job Openings and Labor Turnover Survey. That’s official the lowest level of job openings since March 2021.

Waller’s Remarks Propel Gold to Historic Highs, Anticipation Builds for Non-Farm Payrolls

Last week, traders quickly latched onto comments by Federal Reserve Governor Christopher Waller – one of the central banks most influential voices – signalled that interest rates were unlikely to rise further and could be cut if inflation continued to slow.

Waller’s comments sent Gold prices rocketing to $2,075 an ounce by Friday, surpassing the precious metals previous all-time high of $2,072 an ounce reached back in August 2020. The bullish momentum spilled over into Monday’s session – propelling Gold prices to a new all-time record high for a second day in a row.

This now positions Friday’s Non-Farm Payrolls data as the key arbiter for where prices could go next, which traders will not want to miss out on!

Whichever way you look at it, one thing is clear. The stars appear to be aligning for Gold and it won’t take much for prices to breach new record highs in the coming weeks and months ahead. 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:

About the Author

Phil Carrcontributor

Phil Carr is co-founder and the Head of Trading at The Gold & Silver Club, an international Commodities Trading, Research and Data-Intelligence firm.

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