Gold prices in 2019 increased by 17%
Gold prices increased by 17% this year, and probably this is not the limit of their increase. What’s next? Speculative bets on rising gold price on the Chicago Mercantile exchange (CME) increased by the beginning of September to record highs in 13 years, that is, in the entire history of observations of the indicator. The total volume of positions, as growth is at the peaks of three years.
Gold now has a strong supporting factor — market fear. Investors are afraid that the trade negotiations between the U.S. and China, which can’t even begin, will not bring any effect, and the process of mutual increase of import duties will only grow worse. This means that the industry on both sides would fall into a coma, and how long it will be, only time will tell. For the world economy is a big risk, therefore, increasing the demand for safe assets and gold in the first place.
This is a long term support to gold prices. It is obvious that simple solutions will not end because too much time has passed to ensure that this option remained viable. It also follows that the world’s Central banks will continue to buy gold in its reserves “just in case”. The same Central banks will this year, to soften its monetary policy, and this is also an argument in favor of gold.
Strap, at $1,500 in gold was taken very easily, today a Troy ounce of gold is trading at $1546. Nothing prevents the precious metal to rise, first to $1560, and then easily fly up to $1600. Investment veteran mark Mobius says the gold now to buy at any price, but it would be ideal to wait at least symbolic of the rollback cost.