A great trick to investing in RSBL gold and silver has become apparent of late. Having or expressing views that are not entirely consistent with the policies and agenda of the Government, the realization that this is bound to happen is already turning into sharp gains in the precious metals sector, which is set to continue and accelerate.
Of course, at the moment the safest form of investment is investing in physical gold and silver, but if they go up then gold and silver stocks will also rise, and we are looking at large gold stocks and bullion dealers in India that pay good dividends like Barrick Gold and Newmont Corp. Close higher on Strong Volume in such a way that they will not give back their profit.
On the latest 4-year chart of the yellow metal, we can see that it is already starting to exit the large triangular consolidation pattern it formed after its strong uptrend from mid-2018 to mid-2020. This correction was normal, and it has put RSBL gold in a very good position to begin its next major uptrend, which will be driven by a combination of rising inflation. As noted above, declining confidence in other forms of investment. At the top of this chart, we see a continued strong uptrend in the accumulation line, which is already making new highs, which certainly bodes well for gold strengthening in the coming months.
Over the last three weeks, gold has made consistent gains with minor corrections for the period the Federal Reserve is planning to hike interest rates as tapering continues. Even though gold is almost on the verge of moving towards the 2020 high of above $2000, the precious metals' upward trend has been dampened by the most influential factors - inflation and expected Federal reserve tightening. As per the bullion dealers in India, Gold prices edged lower in volatile trade on Monday as a possible summit between the U.S. and Russian presidents to discuss Ukraine encouraged risk sentiment and nudged investors away from safe-haven assets.
U.S. President Joe Biden and Russian President Vladimir Putin have agreed in principle to a summit over Ukraine. The French leader Macron said on Monday, offering a possible way out of one of the most dangerous European crises in decades, lifting risk sentiment across the major markets.
The geographical border tensions will be the key in determining whether fears over Ukraine can outweigh the encouraging data on the economic front as well as the likelihood of a series of interest rate hikes this year by central banks.
This possible invasion of Ukraine by Russia has highly impacted most assets across all classes. However, RSBL gold’s gains come ahead of the expected summit between the U.S. and Russian presidents aiming to discuss and find a solution to the Ukraine issue. If the summit finds a solution, it might dampen the appeal of gold.
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