Market Overview

Is Now The Time To Buy Gold?

Is Now The Time To Buy Gold?

There are several ongoing stories across multiple investment classes, including stocks trading near their all-time highs, oil is trading above $50 per barrel, and the U.S. dollar continues to struggle.

Meanwhile, gold is on pace for its best monthly performance since February, which may be confusing as the commodity is viewed by many as a safe-haven investment when other asset classes are struggling.

Gold Is The New Gold

The rise of many cryptocurrencies, like bitcoin, were considered to be the "new gold" — that is an alternative investment that offers some form of safety from stocks, but this conception is now over, Max Wolff, a market strategist at 55 Institutional said during a recent CNBC "Trading Nation" segment. Investors are "rising up" to the reality that cryptocurrencies are prone to large sell-offs and are returning to the original safe haven tool — the yellow metal.

"I think risk is rising, and I think the sort of risk-free double down on risk assets period is probably over," Wolff added.

Gold As An Anti-Dollar Play

The U.S. dollar continues to weaken, which by default makes gold stronger, Boris Schlossberg of BK Asset Management added to the discussion. Looking forward, if there is any kind of negative data set relating to the U.S. economy or any positive data set from the Federal Reserve in terms of raising rates, then gold will deflate "just as it has" over the past few years.

But this doesn't mean that now is the time to jump in and buy gold, he continued. There is still certainty if there will be a rally in the dollar moving forward or if the weak trend still has steam left.

At the end of the day, gold is an "anti-dollar trade than anything else" and not so much as a risk trade.

Related Links:

Gold Stocks On The Move

Traders Bet On Gold Miner Rally

Posted-In: Bitcoin BK Asset Management Boris SchlossbergCNBC Commodities Markets Media Trading Ideas Best of Benzinga


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