Gold To Break Out Of Crash And Test 2018 Highs: Metals Expert – Market News Wire 24
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Gold To Break Out Of Crash And Test 2018 Highs: Metals Expert

Recently, one of Wall Street’s head of metals predicted that gold would breakout in this year. With gold prices falling to 2019′s low levels, Standard Chartered’s Suki Cooper feels they are closing in an extravagant territory. The key assumption of Cooper is the Fed (Federal Reserve) would keep its interest rate hike rule on hold throughout next year. She states it is a scenario the Wall Street has not been serious about. Cooper said to CNBC, “The Fed would be on hold in 2019 and 2020 since it prepares its strategies for the next slump, which probably comes in 2021.” Financiers typically see gold as safe haven possession when financial development sputters.

Additionally, Cooper notes that gold follows a past pattern that causes higher prices when the Fed places the splits on a hiking cycle and even curbed rates. Cooper further added, “Financier positioning and prices, in fact, were range clear for a short while ahead of they lifted higher after 6 Months. The trend that we are experiencing at the moment is not dissimilar to what we have observed in the past.” Cooper hints central bank purchasing and increasing demand from India and China would also support gold prices at high levels versus 2018.

Earlier, experts stated that gold might hit $1,400 by this year end. Gold is positioned to shift higher later in this year, controlled by the Fed’s less aggressive standpoint on interest rates and persistent international uncertainties, a precious metals analyst said. The central banks have been purchasing gold at levels not observed in the last 50 Years, as a part of a wider diversification of resources away from currencies counting the U.S. dollar. Apprehensions over the economy globally and geopolitical issues with the trade war amid the U.S. and China have added to insecurity, which mostly benefits gold.

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