Gold has continued to follow MM’s roadmap through 2024, and if it moves as expected into the second half of 2024, we expect a strong rally towards $US2500 over the coming months, i.e., 7% higher. The start of rate cuts in the US could easily trigger such a move by the rate-sensitive precious metal. Local gold stocks have underperformed of late, and we are looking for a trigger to suggest it is time to increase exposure to the Gold Sector.
- We believe gold and its related stocks have found a low with the risk/reward favouring buying at current levels.
As we touched on earlier, Trump has become a huge favourite to win the US election in November. It’s hard to imagine the weight of money moving even more against Biden, considering how “The Don” polarises US voters. However, voting is not compulsory in the US, and Trump fans are likely to all vote for their man, whereas it’s easy to imagine Biden’s staying at home if he cannot portray a more capable image as a strong leader for another term. If Trump wins, it’s bad news for the renewables stocks, at least in the short term, although we would remind subscribers that Trump has been ahead with the bookies for many months, just not as much as today.
- We can see another leg lower by lithium under the psychological $US1000 level, where the risk/reward would appeal to MM.
