Just a few weeks ago there was speculation about whether Bitcoin could be viewed as a “safe haven” alternative to precious metals.
The well-known cryptocurrency has now fallen significantly, meaning that this property is no longer really considered. Gold and silver, however, remain in demand. After the silver price had lagged behind the gold rally for a long time, it even managed to reach a new all-time high at the start of the week. This raises the question: Does the current constellation offer a good entry opportunity?
Has the rise in precious metals just begun?
Concerns about the escalating national debt of many industrialized nations have led to increased purchases of precious metals in recent months. Of course, gold takes first place in its function as a “safe haven”. Silver, platinum and palladium are also used as industrial metals, which can have a corresponding impact on price formation. If investors’ purchases are based on concerns about future economic development or inflation, gold will of course be the first to benefit. However, since silver still has potential to catch up, both precious metals remain interesting. But there are also currently constellations in the “second row” for platinum and palladium that hold out the prospect of a further increase. But the courses are not only driven by the technical side. Rather, fundamental reasons are likely to be responsible for a further increase in the coming months!
Will Donald Trump cause gold to soar further?
In recent months, Donald Trump has repeatedly emphasized that US interest rates are significantly too high for him. The massive criticism of the head of the US Federal Reserve, Jerome Powell, was corresponding. His term of office expires in May next year. It is likely that Kevin Hassett will be Powell’s successor. He had repeatedly expressed his support for the US President’s course, so it can be assumed that under him the US Federal Reserve will take a much more aggressive course. If Trump also manages to fill additional positions in the US Federal Reserve with his loyalists, nothing should stand in the way of a period of very low interest rates. However, it can be assumed that US inflation will shoot up significantly in this case, which means that demand for the “inflation-proof” investment gold will remain high. In this case, the rise of precious metals should be far from over.
Stephan Feuerstein is editor-in-chief of the stock market newsletter Leverage Certificate Trader. He has been dealing with the stock market, especially technical analysis, since the early 1990s. Info: www. Hebelcertificates-trader.de The above text reflects the opinion of the respective columnist. finanzen.net GmbH assumes no responsibility for its accuracy and excludes any claims for recourse.