The market is never stagnant; it cycles. The prices of precious metals keep varying in the resource market. Despite the negative emotions that surround the gold bull market, if you look at the big picture, the future prospects of gold market seem quite alluring. There are several parameters that can significantly switch the gold bull market from flat to profitable and exciting.
Reversal of stock market
The reason that the Gold bull market fails to remain away from the mainstream segment is due to the equity markets that are quite broader. However, stock markets revive over time. The margin debt is high in comparison to the crisis in the market of 2008. A biggest drop was experienced in corporate profits during the last quarter. Gold can be a key patron in the reversal of the market conditions.
The probability of recession creeping is not less than 100%. One can never predict how big can it be and when it would set in. In the previous quarter, the GDP wasn’t quite positive. Unanticipated happenings in the economy can prove out to be positive for the gold bull market.
Backfire in currency war
The chase by the global central bankers to settle to the bottom doesn’t actually fare well when it comes to the long term. Growth is experienced by the countries from the trading partners. If the worst scenario is considered, it can crumble into retaliation, recession and inflation. The world has witnessed currency wars before that have ended in a bad manner. Assets do have a role to play during the crisis hour.
Higher rate of interest
The market always forces the rate of interest to be pushed higher. This has the potential to fracture the real estate market. Rising rates are calculated to be negative when it comes to gold by the analysts which are not actually true. This can actually prove out to be positive when it comes to the gold bull market.
Inflation emergence doesn’t really seem to be around the corner. There are however signs of it picking up. The wages are getting higher and this hints the beginning of the inflation period. High records have been set by the ground beef prices. These have actually doubled in past four or five years. This fact cannot go unaccounted. Gold bull market cannot wait for high inflation to set in to actually perform well. However, the anticipated jump or the onset of inflation can trigger a positive growth in the gold bull market.
Reversal of US dollar
Are you tired of the strength that the US dollar demonstrates? The rise doesn’t imply that this is going to sustain for a long term. Dollar would collapse eventually. This is because the debt trajectory isn’t sustainable mathematically.
Turmoil in the bond market
Mostly in Japan and Europe, there are $3.6 trillion government bonds that are in negative yield. This gives the investors no chance of making any sort of money in the bond market. Inflation can literally slaughter any average holder of bonds.
Positive gold bull market is possible if one has a big picture view of the economic, financial and political trends. Gold has a very bright future. This market segment is full of profitable investment statement and rising prices.
To know more about the market’s bearish and bullish trends, rising gold and silver prices, click on https://investinghaven.com. Determining the price points and trends requires expertise to understand the market and financial indicators. Our financial website, with the help of effective research methodology, applies the best practices that includes-
- Chart analysis- With help of charts, a definite time period can be analysed and future forecasts can be done.
- Fundamental analysis- The fundamental analysis of economic factors indicates the upcoming bearish or bullish trends of securities, commodities, precious metals and other stocks.
- Market Sentiments- The emotional angle of market participants also plays an important role in creating market bubbles and rising trends.
- Effective use of moving averages
- Inter market analysis dominates the research methodology for determining the future trends.