Seems that gold is losing its glitter, recording one-year low price this week. However, it has opened as a “golden opportunity” for investors to buy gold. Several fund managers, investors, and stock experts believe that gold is undervalued.
According to a survey of Bank of America Merrill Lynch (BAML), an Investment service company, roughly 17 percent of the fund managers told that the world’s most valuable metal is becoming too cheap, and more than 50 percent of 178 fund managers said that the most crowded trade was in FAANG stocks. FAANG stock is an acronym for the world’s most trending tech stocks including Facebook, Amazon, Apple, Netflix, and Google.
Best Time To Buy Gold
The recent comments of Jerome Powell, the Chair of the Federal Reserve, regarding the U.S. economy has led to the further downfall of gold prices. “The latest data about the economic growth of is considerably stronger than before.
Rise in jobs and increasing tax incomes have raised consumer spending in the last few months,” said Powell. He signaled that the central bank will continue to gradually raise interest rates while normalizing its monetary policy and lessening its balance sheet.
As reported by CNBC, The Bank of America analysts said that several investors are trying to take this opportunity of the downfall of gold prices to buy gold and sell tech shares. Gold is down more than 2 percent in this month and it has been four months that it is in the loss.
With gold trading below $1230 per ounce, this is might be the time to gold. Moreover, the Bank of America said that this is an opportunity for contrarian bears, who will sell out of the overcrowded tech sector and they should pay attention to the gold industry. Thus, one thing is true that with the increasing the U.S. dollar, the future of gold in the global market is darker and darker.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]