Daily Spotlight

Investors Rediscover Gold

When stocks get volatile, and global economic conditions become unpredictable, investors often flock to gold. Recently, the spot price for an ounce of gold broke through the $1,500 level for the first time in more than six years. The fundamental factors driving the uptrend include the potential impact of trade wars on global GDP growth, increased volatility in U.S. stock markets, the uncertainty surrounding the ongoing Brexit decision in Europe and uncommon negative interest rates in countries ranging from Germany to Japan to France and to Switzerland. From a technical standpoint, gold has broken out of a three-year trading range between $1,200 and $1,340 and now appears to be in a bullish pattern of higher highs and higher lows that dates back to December 2016. Our forecast trading range for gold in 2019 is $1,200-$1,550, and our average for the year is $1,400. This compares to average gold prices of $1,265 in 2018, $1,277 in 2017, $1,258 in 2016 and $1,155 in 2015. As long as global economic uncertainty and trade fears are part of the market conversation, gold is likely to remain in demand. ...  from Germany to Japan to France and to Switzerland. From a technical standpoint, gold has broken out of a three-year trading range between $1,200 and $1,340 and now appears to be in a bullish pattern of higher highs and higher lows that dates back to December 2016. Our forecast trading range for gold in 2019 is $1,200-$1,550, and our average for the year is $1,400. This compares to average gold prices of $1,265 in 2018, $1,277 in 2017, $1,258 in 2016 and $1,155 in 2015. As long as global economic uncertainty and trade fears are part of the market conversation, gold is likely to remain in demand.   more

Market Podcast

Analyst
Quick Notes

Weekly Economic Commentary