Opinion: Gold May Have More Upside Potential, U.S. Government Shutdown Could Trigger Massive Inflows

BlockBeats News, September 30th, Pepperstone Market Strategist Ahmad Assiri stated that although the gold price has reached a new high with the support of speculative flows and structural demand, the upside potential for the gold price appears fragile.

He said that central banks around the world are still active buyers, and institutional portfolios are increasingly raising their gold allocation above the traditional 5% benchmark. Given the softening U.S. labor market indicators and other macroeconomic conditions, the position of gold as a hedge and a diversification tool may remain robust.

A possible U.S. government shutdown may also lead investors to turn to gold and U.S. Treasury bonds. Although short-term gold fatigue may occur, any profit-taking will be quickly absorbed by demand. (Golden Ten)