By Zach Scheidt
This post Breakout Alert: $1,500 Gold By September? appeared first on Daily Reckoning.
Don’t look now, but gold is on the move!
Just over the last week, the futures price for an ounce of gold rose from a low of $1,204 to a high near $1,244 during yesterday’s trading session.
A 3% gain may not seem like much. But keep in mind this move happened in just over a week’s time.
More importantly, today I want to show you why this recent pickup in gold is actually just the start of a much larger — and more explosive — advance.
You’ll want to be sure to take action right away so you can protect and grow your wealth when the gold rally takes off in earnest!
The Summer Doldrums for Gold are Coming to an End
It’s been a long and frustrating summer for short-term gold bugs.
That’s because after starting 2017 on a positive note, gold prices have been stuck in a wide trading range for the last four months. Most recently, gold hit the bottom of this range, and then began to rebound over the last week.
Impatient traders may be tempted to use this bounce to sell their gold positions. After all, gold hasn’t been giving investors positive returns for the last few months. While the stock market has been hitting new highs. What gives??
If you find yourself second guessing your decision to invest part of your wealth in precious metals like gold or silver — or if you’re on the fence about whether gold or silver makes sense for you, today’s alert is for you.
Because my research shows that the time to own gold is now. And I expect the summer doldrums for gold prices to end in a dramatic breakout higher.
You’ll definitely want to have a material amount of your money invested in gold before this breakout occurs.
Gold Breakout Part I: The U.S. Dollar Demise
Gold’s 3% bounce over the last week has a lot to do with U.S. economic data that has come out over the past few days.
Now, please stick with me as I connect the dots. I know economics isn’t the most riveting of subjects. But the returns you can generate as gold prices move higher should be exciting to any investor.
Last Friday, the Labor Department reported that the Core Consumer Price Index (or CPI) increased by just 1.7% in June.1
The Core CPI is the Fed’s primary measure for inflation. And the reading shows that inflation is still below the Fed’s 2% target level. Moreover, the core CPI has been trending lower over the last few months, which means according to this measure, U.S. consumers are facing less pressure from inflation.
Now you and I both know that inflation is important for things like health care, housing, and other life expenses that are moving higher. But we’re talking about the Fed right now. And the Fed believes inflation is low.
With low inflation expectations, the Fed is less likely to raise rates later this year.
In fact, traders are now …read more
Source:: Daily Reckoning feed
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