The Financial Express reported this week that now is the time to buy gold as prices are set to rise
The Financial Express is reporting that now is a great time to buy gold thanks to the first inverted US yield curve in more than a decade raised fears of a looming global recession. The report says experts predict that this concern will lead to a price rise for gold within the next 12 months.
The Associate Vice President of the financial services firm, Motilal Oswal told the publication, “The general tendency for gold will be on higher side this year and next year possibly. From the calendar year perspective 2019, we can expect spot gold prices to touch around 1,400$ per troy ounce.”
Demand for gold expected to remain strong in Asia as perfect storm looks set to push up gold prices
Finews Asia has said this week that gold is back in no uncertain terms as investor appetite sees gold being snapped up in large amounts. Central banks too are buying in record volumes, with more gold being added to central reserves than at any other point in the last five decades. The report notes that central bank demand for gold increased by 78% in the last 12 months and, the appetite for bullion doesn’t look to be slowing down.
It suggests that a perfect storm is being created and the price of gold could soon rise substantially– making now the time to invest. The report, published by the Singapore Bullion Market, says, “…the price of gold may soon rise substantially as several factors combine to form the perfect storm. First, they say gold is becoming more attractive as the equity bull market is coming to an end, forcing investors to shop around for other assets.
Second, with volatility increasing, investors are looking for stability, which may also benefit the gold price. And third, the dollar is expected to get weaker this year – also benefiting the gold price. The US dollar and gold tend to move in opposite directions.
The fourth aspect is a lack of trust in the US under the guidance of President Donald Trump, which in turn may help depress the dollar further – thus pushing up the price of gold.
Fifth: a currency crisis and level of indebtedness in many countries will whet the appetite of investors for gold, given its functions as a long-term safe haven. With a potential slump of cryptocurrencies also potentially imminent, some investors may be looking for other, more traditional, vehicles.”