It is no secret that the gold price has been steadily declining since its peak at $1,900 in 2011. Investors across the globe are watching with bated breath as the price continues to drop, leading many to question whether or not a breakout is possible. The answer, according to Tavi Costa, is a resounding yes.
Costa is the founder of the Pavillion Global Markets, which is a veteran-owned business focused on facilitating access to the global markets for people worldwide. According to Costa, gold prices are bound to jump more than 10% as macroeconomic data continues to paint a rosy picture.
Costa cites a few key factors in his belief that gold prices are set to break out. First, he notes that unemployment rates have continued to drop, signaling a healthy labor market and increased consumer spending. Second, he suggests that geopolitical uncertainty–such as the ongoing trade war between the U.S. and China–could drive more investors to the safe haven of gold. Finally, recent discussions around quantitative easing (QE) could also play a role in the rise of gold prices.
Despite his optimism about gold prices, Costa urges investors to be smart when entering the gold market. He warns against speculating on gold, noting that it is a long-term investment. He also cautions against taking too much leverage, as gold is known for its volatility and can swing dramatically.
Nevertheless, Costa’s bullish outlook has many investors excited as they, too, see the potential for increased gold prices. While no one can predict the future with absolute certainty, the overwhelming sentiment is that a gold price breakup should occur sooner rather than later. All eyes are now on gold to see if Costa’s predictions will come true.