A bull market is defined by a condition in a financial market where a commodity, stock, currency or bond prices are rising or are expected to rise
Gold prices have surged over 20% since January 1 and touched a life-time high of $1,546.10 per troy ounce amid multiple headwinds
Gold prices have hit a record high amid a rush for safe haven assets owing to the fears of a recession. Goehring & Rozencwajg, a research firm which focuses on investments in natural resources, says the great gold bull market has begun.
Gold prices have surged over 20% since January 1 and touched a life-time high of $1,546.10 per troy ounce amid multiple headwinds, primarily US-China trade spat.
Explaining the gold bull run further, Goehring & Rozencwajg said gold stocks were also strong during the quarter, advancing by 14 % .
"We have seen a large increase in the physical accumulation by both gold and silver ETFs (exchange traded funds) over the last several months," the firm said.
However, they added that the only thing that concerned them was the price of oil relative to gold.
"Over the last three years, we have been very bullish on global oil markets. We explained how we were waiting for gold to become undervalued relative to oil, just like it did back in the 1999-2000 period.
A "cheap" gold-oil ratio would give us our final signal that gold's three-and-a-half-year corrective phase had come to a close" they added.
This story has been published from a wire agency feed without modifications to the text.
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