"I continue" said Gareth Soloway
Gareth Soloway: Gold's Path as 2021 Wraps Up; Thoughts on Uranium, Oil, Gasyoutu.be
The gold price has left some investors feeling disappointed this year, but as 2021 approaches its end, Gareth Soloway of InTheMoneyStocks.com is still "very, very bullish" on the yellow metal.
Speaking to the Investing News Network, he said the fact that gold has been trading sideways for the last month or so is a positive indicator, although it may not appear to be one.
"What that tells us is that gold is starting, believe it or not, to pay attention to inflation. And the reason why you know that is because in general we've seen interest rates go back; we were down at 1.2 to 1.3 percent a few months ago, and we're now near 1.6 percent," Soloway explained in the interview.
"If you look at the performance of interest rates vs. gold over the last 20 years, as interest rates go up, gold sells off. We haven't seen gold sell off, we've seen gold more chop sideways over the last couple of months as interest rates have gone up. And what that again tells us is that the market is starting to realize inflation is here, and big money is buying every single dip on gold. So I continue to be very, very bullish on gold over the longer term," he added.
Soloway also shared his thoughts on this week's US Federal Reserve meeting, which ran from Tuesday (November 2) to Wednesday (November 3). The central bank announced plans to start tapering its bond-buying program, saying it will reduce purchases by US$15 billion a month; if it stays on track, it will reach zero by June of next year.
Of course, there's no guarantee that the Fed will stick to that schedule — Soloway pointed out that it has left room to speed up, slow down or make other changes. "The market loves that — anything where the Fed is flexible in case the markets dip, that's the way the market views it," he said.
Aside from gold, Soloway discussed a number of other commodities, including silver, which he's feeling a little more positive on compared to midway through this year, and uranium, where another leg up could be coming.
Oil and gas have also been grabbing attention, but Soloway said for him they've gotten too mainstream. He said there's been a "confirmed top" in oil, and reminded market participants to look for sectors that have upside potential, but aren't attracting broad-based attention.
"As soon as you start to see that talk and you look at the charts — if they're already extended and they've already rallied on anticipation, then you don't necessarily have a good opportunity to get in at a good price," he commented. "For me it's more about looking at the future when no one's talking about it."
Watch the interview above for more from Soloway about what's happening in the market.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.