Gold investors need to buy the dip
- robertbelanger7
- May 30, 2024
- 1 min read
Nitesh Shah, Head of Research at WisdomTree, asserts that despite gold's resistance at $2,400 an ounce, a significant correction is unlikely due to strong central bank and Chinese retail demand. Central banks strategically buy on price dips, and Chinese consumers see gold as a better option than equities or real estate. While the Federal Reserve's current stance keeps investors cautious, Shah predicts rate cuts by the end of the year could trigger a gold rally.
Shah also sees potential in silver, driven by industrial demand, especially from the solar power sector and electrification. Silver prices, trading near an 11-year high above $32 an ounce, reflect increased investor interest. Although silver's price movements are closely tied to gold, Shah expects silver to follow gold's rally once rate cuts begin.
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