Gold outperformed all major commodities in 2018 and still continues to do so. the bullion is being on an upward trajectory since October 2018 as a result of market turmoil. Why is gold still climbing after the market sell-off? The annual commodity seasonal adjustment is keeping gold going due to an increase in commodity prices. But, one particular point over the years is that gold moves strongly with USA inflation.
The moment inflation starts to rise, gold increase as a result of its safe-haven status or its hedge against inflation. Moreover, the bullion is on its part to rise and break 1300 by mid-February and continue its momentum until April.
Furthermore, if the risk to inflation dissipates during the first half of 2019, gold will also decrease, but the probability for inflation to decrease is very low. What I do expect is that oil prices will start to rise which will result in high gold prices.
I do expect gold to reach 1350 as a result of global trade tensions, political instability in the USA and elsewhere in the developing nations. However, 1350 is a conservative estimation, it can go higher due to political unrest in developing nations.
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