Gold remains stuck in a wide trading range, fluctuating between $2,400 and $2,300 an ounce. The ongoing aggressive monetary policy by the Federal Reserve has kept many investors wary, contributing to this volatility. However, independent market analyst David Brady encourages looking at the broader picture rather than getting caught up in the short-term movements.
In a mid-June interview with Kitco News, Brady, who authors The FIPEST Report on Substack, highlighted that the anticipated dip in gold and silver prices over the summer could present a strategic buying opportunity. He expects these precious metals to enter a prolonged bull run eventually.
From a technical standpoint, Brady predicts that gold prices could bottom out between $2,280 and $2,250 an ounce. He emphasises that the current consolidation is a temporary setback within a longer-term upward trend. Instead of trying to pinpoint the lowest price, Brady advises investors to find a comfortable entry point and withstand the current market volatility.
“I’m anticipating gold to reach $2,700 to $3,000 before we see a significant correction in this rally,” Brady explained. “We’re discussing minor fluctuations when considering the potential gains. The risk-reward profile favours investors, but patience is crucial to let this scenario unfold.”
Brady also noted that $3,000 is only a mid-rally target. He foresees a steeper correction once that point is reached, with long-term prices potentially soaring to $5,000 or even $10,000 an ounce.
“This is the beginning of a precious metals bubble,” Brady said. “This trend could last for a decade or more as confidence in fiat money wanes.”
With global debt levels skyrocketing, Brady argues that gold and silver remain the only reliable stores of value. The U.S. debt currently stands at $34 trillion, and many economists, including Federal Reserve Chair Jerome Powell, have acknowledged its unsustainable trajectory.
Two weeks ago, the International Monetary Fund warned that U.S. government debt poses a growing risk to the global economy. According to Brady, this escalating crisis is diminishing trust in the U.S. dollar, leading countries to trade in alternative currencies.
For instance, Saudi Arabia has stopped pricing oil exclusively in U.S. dollars. While China has been making headlines with its gold-buying spree over the last year and a half, Brady points out that this trend started much earlier. A decade ago, Germany was among the first major central banks to repatriate some of its gold from London and New York. Since then, several other countries have followed suit. In this context, gold acts as an “anti-dollar,” explaining why nations are purchasing and retaining it.
“Even if you don’t heed my advice, follow the smart money—central banks are the smart money right now. They’re not buying gold for its shiny appearance,” Brady remarked. “They see gold as a long-term investment, preparing for a significant event or crisis.”
Brady’s perspective underscores the importance of viewing gold as a long-term investment. He stresses that the potential for significant price increases outweighs the short-term fluctuations. By maintaining a focus on the bigger picture and exercising patience, investors can navigate the current volatility and position themselves for substantial gains in the future.
