During the last few days gold prices have seen fluctuation. On Tuesday, the price for gold bounced off its lowest level as the appetite for safe-haven assets increased due to several events:
- the International Monetary Fund revised downward the global growth forecasts for 2019 to 3.5% from October’s 3.7%;
- China and the euro zone suffered a bigger-than-expected slowdown;
- trade tensions that could continue to destabilize a slowing global economy.
After this news prompted, on Tuesday, Comex gold futures went down to an intraday low of $1,276.00 a troy ounce before recovering to trade at $1,282.55 by 8:10AM ET (13:10 GMT), while spot gold traded at $1,283.07 per ounce, up $2.70, or almost 0.2%.
How Did Gold Prices Move Recently?
Gold for February delivery on Comex GCG9, -0.50% rose 60 cents, or 0.05%, to settle at $1,284 an ounce after trading between $1,277.70 and $1,286.
Naeem Aslam, chief market analyst with Think Markets UK, said there is “no shortage of shocking waves which are making the headlines and these elements are supporting the price of gold. Moreover, the overall credit situation in the world is a matter of concern as well and this has increased the demand of physical gold in the eyes of some central banks”.
Everyone Is Looking at the World Economic Forum in Davos
Considering the recent evolutions, traders are looking to find out what the regular monetary policy meeting of the European Central Bank will bring on Thursday, as the ECB President Mario Draghi will also hold a press conference.
Even more, analysts believe that the World Economic Forum in Davos will set the direction for gold soon. Considering the trend of the economy around the world, the trade issues, the Brexit deal, an unstable oil market and several political risks, there is a high chance that the forum attendees could be raising bells that could fuel demand for safe havens. If this scenario presented by Investing.com analysts will happen, then the yellow metal could be reaching again the $1,290 resistance level and re-target the key $1,300 barrier, according to them.
Gold Prices in 2019 According to Analysts
Even more, according to Metalla Royalty & Streaming director E.B. Tucker “gold will hit $1,500 an ounce in 2019”. For Kitco.com he declared that “the first positive sign for gold prices is that many miners are producing at a loss. The second, is that some of the recent mergers, including Newmont and Goldcorp, are mergers of necessity. And the third, is that mining companies are running out of reserves in the ground.”
Metal Bulletin precious metals analyst Boris Mikanikrezai wrote in a Seeking Alpha post on Wednesday that “the most likely scenario for 2019 is less rate hikes, weaker U.S. dollar, and higher gold prices”.
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