They anticipate that the price of GOLD will rise: how to invest in pesos

For investors it is a very volatile time, in which they must reorganize their portfolios, due to the world scenario of high inflation, appreciation of the dollar and rise in interest rates by the US Federal Reserve. In this context, start playing a important role of gold as a store of value for savers.

Although the price of the gold metal has fallen throughout the current year, analysts point out that has been much more stable than expected compared to other assets, so it can present itself as an opportunity.

“Looking ahead to the coming weeks, We believe that there are some factors that, if combined, could justify a potential rebound in gold and some assets and shares of companies related to the metal in the next three months”stand out from the Research team of IOL invested online.

According to these analysts, the first of these factors responds from the point of view of technical analysis.

“Regarding the evolution of gold, we highlight the good movement it has made in the last week. After testing the key support of the $1,700, an area that represents a minimum level that has not been reached since March 2021began to draw a short-term rebound”, they underline.

With this reaction, it is argued that the price of the gold metal managed to break upwards the simple average of 21 trading sessions.

The price of gold has fallen throughout 2022, but it was one of the least punished assets and one that can rebound in the short term.

“Additionally, the latter makes us think that it would be possible to establish a short-term buying strategy determining as a first objective the level of US $ 1,850, established both by a marked resistance that it maintained throughout 2021, but also coincident in the simple average of 200 wheels”, they describe from IOL.

Gold as an opportunity, beyond the technical

Beyond the technical analysis, and if it is observed from a fundamental point of view, the experts point out that, in a scenario of a sharp rise in interest rates and a strengthening of the multilateral dollar, as occurred during almost all of 2022, “there is no It usually translates into a good time to expect a rise in the price of commodities, as is the case with gold”.

However, they note that the recent drop in the 10-year interest rate, a fact that began to discount a scenario of slowdown in the US economy, could represent a “positive factor to drive gold to a short-term upward movement.”

On the other hand, so far this year, despite the overwhelming rise in the dollar, it stands out that gold has only fallen barely 1% in dollars.

“While it remains in negative territory, so far, manages to widely outperform the main Wall Street indicessuch as the S&P 500, which has lost 13% of its value since the beginning of the year”, stand out from IOL.

Second, analysts stress that there is another factor that, historically, tends to generate increases in the price of gold. They refer to the war tensionsespecially those that began months ago with the Russian invasion of Ukraine.

You can invest in gold through stock paper, such as Cedears and ETFs.

You can invest in gold through securities denominated in pesos, such as Cedears, and also with ETFs.

“Back then, with the beginning of the conflict in Europe, gold soared almost vertically to just over $2,000, remaining very close to its historical maximum. As much as the situation between Ukraine and Russia has receded into the background in recent times, the markets have begun to pay attention to another potential conflict, which could also have serious consequences for the world economy.

Gold: challenges and tensions that can drive its price

In recent days, other international tensions have been added, such as the uncertainty related to the visit of the president of the United States House of Representatives, nancy Pelosi, to Taiwanwhich translates into an escalation in the recent tensions between China and the United States.

In fact, the Ministry of Defense of the Chinese regime warned that the Your country’s Armed Forces are “on high alert” and that they will seek to “thwart any type of external interference.”

Along the same lines, China announced that it will launch “selective military actions” in response to Pelosi’s visit, to Taiwan, “at a time when tensions between Washington and Beijing are reaching worrying levels,” IOL analysts say.

The rise in rates by the Fed and the recession in the US economy may encourage gold to rise in price as a safe haven.

The rise in rates by the Fed and the recession in the economy in the United States may favor gold as a refuge and rise in price.

How to invest in gold from the Stock Market

Based on this complex global panorama for international politics and the economy, experts await a possible rebound in the price of gold. Therefore, it is possible to invest in this asset from different stock market assets that follow the behavior of the price of this metal.

From the local market, a good way to have exposure to gold, for IOL analysts, is through the purchase in pesos of the Cedears (Argentine Deposit Certificates) of some international mining companies that are listed in dollars, such as Barrick Gold, Yamana, and Harmony.

For example, when the war broke out between Russia and Ukraine, these three mentioned assets rose between 30% and 40% in just three weeks.

“However, in the case of these companies, it is important to note that investing in these assets is usually much more volatile and risky than investing directly in gold,” warn from IOL.

Finally, for those interested in investing in the metal, but from the United States market, experts recommend that “a good way to invest in gold” is through the GLD, which is an ETF, an index, which replicates the movement of the metal.-

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