Global gold and the possibility of high prices

Gold rose to a seven-year high two weeks ago due to geopolitical tensions in the Middle East, reaching $ 1,613.30 on Jan. 8, but prices subsequently reversed their downward trend and fell to $ 1,536. They had. Another factor that limited the growth of gold prices last week was the signing of the first phase of the US-China trade agreement between US President Donald Trump and Chinese Vice Premier Liu Hei on Wednesday at the White House, and temporarily Ending an 18-month dispute between the two countries that has shaken global markets. Gold, which is becoming a safe haven for investors amid economic and political uncertainties, rose 18 percent last year as a result of a US-China trade dispute. In the Kitconnews poll of 13 Wall Street experts, 13 people predicted that 10 people would expect a 77% price increase, but no one voted for a decrease in the price of gold, and 3 people (23%) did not have an opinion. Meanwhile, 820 people took part in the Kitconnews online survey of investors, with 475 people predicting a 58% increase and 208 people predicting a 25% price decrease, while 137 people (17%) had no opinion. In last week’s poll, the vast majority of Wall Street analysts and investors voted to raise gold prices. The price of gold futures in the US market on Friday rose $ 9 and 80 cents, or 0.6 percent, and closed at $ 1560 and 30 cents, and for the whole week was about 20 cents higher than the final price last Friday. “I think gold will rise under the influence of the US Federal Reserve and the correction in stock prices,” Bob Haberkorn, chief commodity broker at RGO Futures, told Kitconews. Richard Baker, one of the editors of Seven Report Research, noted that gold has risen along with stock markets. If the S&P 500 index reaches 3350 points this week, gold should climb to $ 1580 to maintain its uptrend. Given the ambiguities surrounding the US presidential election, corporate earnings and economic growth in 2019, this is possible. From the point of view of interest rates, there is a favorable environment for non-profit assets such as gold. Charlie Nedos, senior market strategist at Lassalle Futures Group, predicted that gold would be steady or rising, especially as it closed above the 10-day moving average near $ 1,558. George Grove, CEO of RB Asset Management C also expected gold to rise due to various political, geopolitical and economic concerns. “Gold had a price correction as geopolitical tensions eased and may now consolidate in the $ 1,550 range,” said Kalin Szynski, SIA, a senior market strategist at SIA Capital Management.