Analyst Urges 3%–8% Gold Allocation as Prices Jump to $4,585/oz
Gold price surged to $4,585/oz after U.S. new home sales climbed 8.9% in February and 7.4% in March, with renewed buying following a drop in U.S. job openings to 6.87 million and an ISM Services PMI slide to 53.6. NDR’s LaForge advises building a 3%–8% gold allocation now.
1. Recent Gold Price Drivers
Gold climbed to $4,585/oz after U.S. new home sales rose 8.9% in February and 7.4% in March. Additional buying pressure emerged when job openings fell to 6.87 million and the ISM Services PMI dipped to 53.6, signaling softer economic momentum.
2. Analyst Allocation Recommendation
NDR’s John LaForge now recommends investors allocate 3%–8% of portfolios to gold, citing current price levels and historical performance at similar valuation points. This call could boost inflows into physical gold vehicles, including major gold-backed ETFs.
3. Technical and Contrarian Indicators
A key gold-timing indicator recently hit a cycle low, reflecting extreme bearish sentiment that has historically preceded strong rallies. Combined with renewed physical buying, the contrarian setup suggests potential upside for gold exposures over the coming months.