Like the dog days of summer, the current tranquility in the commodities market could be a deceptive lull, as a flurry of impending pivotal economic data and events is poised to set the tone for their upcoming trajectories.
All eyes are currently trained on the Federal Reserve’s Open Market Committee (FOMC) gathering, which kickstarted Tuesday morning and is set to wrap up Wednesday afternoon. Seen as the most important U.S. economic data event, a majority of market spectators foresee a 0.25% lift in the Fed funds rate, the central U.S. rate. Market participants globally will meticulously dissect the forthcoming FOMC statement and Fed Chair Powell’s media briefing for potential indications of the Fed’s monetary strategy in the forthcoming months.
Gold and silver prices successfully clung onto their small gains as the U.S. Federal Reserve stepped into the commencement of their two-day policy meeting. Recent metrics indicated a positive leap of $4.20 for August gold, positioning its worth at $1,966.5. Its worth noting that while bulls have a near term advantage, we are still seeing the established support and resistance levels in like with the $1900-$2000 price window. Meanwhile, September silver charted an increase of $0.26, reaching $24.84.
U.S. stock indexes displayed modest upward movement at midday, hinting at a probable continuation of the price upward trends in the subsequent weeks. Meanwhile, the favorable stock market conditions might be potentially redirecting interest from investors towards it, diverting them from traditionally steadfast safe-haven assets like gold and silver.
Balance could quickly shift as the week unfolds a series of economic data and corporate earnings announcements. Noteworthy are the release of various global PMI data, earnings results from tech behemoths like Microsoft and Alphabet, central bank verdicts from the likes of the European Central Bank and the Bank of Japan, and the U.S. Q2 GDP report, among other things.
These vital economic pointers and corporate performance measures will undeniably influence investor sentiment, thereby shaping the commodities market. Especially, the anticipated interest rate increment by the Fed could wield a critical impact on gold prices. Don’t be surprised if we witness a volatile next couple of days.
Investing in precious metals can be a wise choice for many investors, but it’s important to understand the basics before diving in. Here are some steps that I would suggest to someone looking to learn more about investing in precious metals:
Understand the basics
Start by reading up on the basics of investing and precious metals. Learn about the different types of precious metals available for investment, such as gold, silver, platinum, and palladium, and the different ways to invest in them,
such as physical bullion, ETFs, mutual funds, and mining stocks.
Learn about the market
Research the precious metals market and the factors that affect their prices, such as supply and demand, geopolitical events, inflation, and interest rates. Follow financial news sources, such as Bloomberg or the Wall Street Journal, to stay up to date on market trends and developments.
Set investment goals
Determine your investment goals and risk tolerance. Are you looking to invest for the short term or the long term? Do you want to invest in precious metals as a hedge against inflation or as a diversification strategy? Understanding your goals and risk tolerance will help you make informed investment decisions.
Choose a reputable dealer
If you decide to invest in physical precious metals, choose a reputable dealer. Look for dealers with a long history of providing quality products and good customer service. While GoldClub Direct is newer, our team comprises of over 100 years of experience in the space.
Consider working with a financial advisor
Investing in precious metals can be complex, and it’s important to have a solid investment strategy in place. Consider working with a financial advisor who specializes in precious metals investing to help you make informed decisions and manage your portfolio.
Remember that investing in precious metals is not a one-size-fits-all solution, and it’s important to do your own research and make informed decisions based on your own goals and risk tolerance. By following these steps and learning as much as you can about the market, you can make informed investment decisions that work for you.
Always Insured, Always Online, GoldClub Direct.
All Updates and Market info are provided as a third-party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.