Lead Capital Partners Reports Gold Hits 3-month High

2024-04-16 03:28:48 Industry

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Lead Capital Partners says the price of gold hits 3-month high as equity market volatility continues in February

According to Lead Capital Partners, gold prices have surged to 3 month highs as volatility in global equity markets show little sign of abating. The spot price for the yellow metal touched $1200 in fevered trading on Monday before falling back slightly to close out the session at $1197.00.

Gold has enjoyed a renaissance in 2016 as investors have sold stocks reasoning that, with the US economy seemingly heading for, at best, a period of slow growth, US companies appear overvalued.

?Federal Reserve officials have been conspicuous by their silence,? said Fernando De Renta, who leads commodities strategy at Lead Capital Partners. ?We?ve grown accustomed to any number of these FOMC voting members voicing their forecasts for interest rates on any microphone or television camera in the immediate vicinity but it appears they?ve been told to keep their opinions to themselves for fear of sparking more selloffs.?

Gold has spent much of the last 3 years being sold heavily as investors prepared for the Federal Reserve to tighten monetary policy but consecutive months of weaker-than-expected economic data has prompted a sharp decline in expectations for further rate hikes.

?Far from pricing in Fed interest rate increases, gold is pricing in the likelihood of a reversal in the fortunes of the US dollar. We?re in no doubt that the central bank won?t have any choice but to roll back the December rate hike and, potentially, introduce negative interest rates as the European Central Bank and the Bank of Japan have done recently,? said De Renta

Lead Capital Partners says it expects gold prices to rise steadily throughout the course of the year but it does not rule out a pullback in the short term.

About Lead Capital Partners:
Lead Capital Partners is an independent investment management practice founded on the philosophy that an active, opportunistic and adaptable approach to investing provides our clients with the best chance for the realization of long-term positive returns irrespective of prevailing market environments.
It is our firm belief that the ?buy and hold? investment strategy that has traditionally served investors to such great effect over the decades can, now, lead to significant losses in bear markets, or to little or no profit in markets that persist in trading in ranges unless they are actively managed by seasoned professionals such as those at Lead Capital Partners.