Commodities brokerage SP Angel says gold is poised to enter a major bull market, with the precious metal up more 12% for the year to date.
“While growth of 20% strictly defines a bull market, some market participants are suggesting a rally could involve significant higher gains that last for years,” SP Angel said. “The gold market has only surged twice since World War II, rising 1,755% through 1980 and 611% through 2011. The precious metal could build on recent gains as the Federal Reserve gets set to lower rates, U.S. economic activity slows and trade tensions remain. Historically, gold has rallied when Fed cuts occur because the move depresses bond yields and the U.S. dollar.”
Analysts said markets expect the Fed to cut interest rates at its July 30-31 policy meeting.
Goldplat plc (LON:GDP) is an AIM-listed, profitable gold recovery services company with two market leading operations in South Africa and Ghana.