2019 could be the year when investors are attracted to gold because of global uncertainty. This could also end up increasing gold prices. See how.
A leading metal consultancy has predicted that the world will consume 4,370 tonnes of gold this year. It will be the most since 2015 and slightly higher than 4,364 tonnes consumed in 2018. Gold prices are expected to average $1,310 an ounce this year which is the highest since 2013.
Review of 2018
For most of 2018, Gold faced significant headwinds. Dollar had become stronger, the Fed kept hiking rates steadily and the US Economy was given a booster shot by the Trump Administration’s tax cuts. All these factors encouraged investor sentiments. This resulted in a rising stock market at least until the beginning of October.
However, geopolitical risks and negative macroeconomic sentiments kept rising. This resulted in the stock markets losing their sheen and suffering a pullback. A...