Gold At 6 Month High At $1,300 and All Time Record Highs In Australian Dollars Over $1,870

IMG Auteur
Published : January 04th, 2019
678 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : Market Analysis

– Gold over 6-month high at $1,300 on global slowdown fears
– Bullion surges 5% in December and consolidates on gains this week
– Gold surges to all time record highs in Australian dollars ($1,871)
– Safe haven demand for safe havens as risk assets sold
– Apple’s poor outlook sees stocks fall; Markets now wagering on Fed rate cut
– “2019 is already getting off to a volatile start and we expect to see the political and economic uncertainty of 2018 continue and deepen,” GoldCore told Bloomberg News


Gold price in Australian dollars – 1 year (GoldCore)

We are bullish on gold in this quarter and in 2019 as the market backdrop looks very supportive indeed. For the first time in many years, I am positive on the gold price in the short and medium term – meaning this quarter and the next year or two.

However, we are concerned that gold may have become overbought from a trading perspective in the very short term.

Thus, in the very short term we could see a bit of a pullback. A retracement of some 50% of the recent gains should be expected. A shallow pullback should be greeted as an opportunity to acquire gold at these still under valued levels.

Investors who are allocating to gold for the first time, would be best to dollar, pound or euro cost average into physical gold by buying 50% in the coming days, then 25% in the next month or so and then the remaining 25% withing three to six months. Not having an exposure to physical gold makes investors exposed to major financial and systemic risk.

2019 is already getting off to a volatile start and we expect to see the political and economic uncertainty of 2018 continue and deepen as we told Bloomberg this week.

Gold will continue to act as a hedge in 2019 as it did in 2018.

Gold’s hedging and safe haven credentials were clearly seen again in recent months – especially for UK, EU and Australian investors. Gold gained  2.7% and 3.8% in euros and pounds (see tables & charts). Gold rose 8.5% in Australian dollars in 2018 as the Australian economy slowed down and property and stock markets in Australia fell.

Trade wars, Brexit, EU contagion and the risk of the global debt bubble bursting remain real risks that will likely impact risk assets in 2018, as we discussed in our just released and well received Outlook 2019 Podcast.

We believe risk assets will continue to under perform, while gold (and silver) outperform again in 2019. The record nominal highs seen in Australian dollars this week will be seen in pounds, euros, dollars and other currencies in the coming year or two – possibly as soon as late 2019 or 2020.

As ever, it is prudent to hope for the best but be prepared for less benign financial scenarios by diversification and owning precious metals in the safest ways possible.

Wishing you and yours a healthy and prosperous 2019.

News and Commentary


Source: Bloomberg

Listen on  ,  & . Watch on YouTube below

Gold Prices (LBMA PM)

03 Jan: USD 1,287.95, GBP 1,024.05 & EUR 1,132.62 per ounce
02 Jan: USD 1,287.20, GBP 1,014.44 & EUR 1,125.27 per ounce
31 Dec: USD 1,281.65, GBP 1,005.45 & EUR 1,120.03 per ounce
28 Dec: USD 1,277.25, GBP 1,009.16 & EUR 1,114.91 per ounce
27 Dec: USD 1,271.10, GBP 1,006.20 & EUR 1,115.26 per ounce
24 Dec: USD 1,261.25, GBP 996.26 & EUR 1,105.23 per ounce
21 Dec: USD 1,257.60, GBP 993.76 & EUR 1,101.53 per ounce

Silver Prices (LBMA)

03 Jan: USD 15.53, GBP 12.37 & EUR 13.70 per ounce
02 Jan: USD 15.44, GBP 12.19 & EUR 13.51 per ounce
31 Dec: USD 15.47, GBP 12.11 & EUR 13.51 per ounce
28 Dec: USD 15.30, GBP 12.05 & EUR 13.34 per ounce
27 Dec: USD 15.06, GBP 11.92 & EUR 13.22 per ounce
24 Dec: USD 14.68, GBP 11.60 & EUR 12.88 per ounce
21 Dec: USD 14.69, GBP 11.59 & EUR 12.86 per ounce

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth.
WebsiteSubscribe to his services
Comment this article
>Follow all commentairies
You must be logged in to comment an article8000 characters max.
Log in or Sign up
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Battle Royale
22 JanJ.-1
"Boundless rage", does seem to be a characteristic of the collectivist Left.
Coming Attractions
22 JanJ.0
You are correct, history does recycle. And it has been long enough that all those who remember first hand what the last cycle of collectivist revo...
Ecological Armageddon: “We Are Destroying Our Life Support Systems!”
19 Jankevthorne
In further support of the article's conclusions, I recommend this treatise written by Jeremy Grantham, a chief investment strategist: "The original...
Beware the "ZeroHedge Trap"
16 Janjohngaltfla@yahoo.com
Nicely done and very well written. The doom is coming but this asteroid misses Planet Earth in Q1. However, I think we are in for a substantially r...
Turbulence and Brexit Make Safer Options Like Gold and Cash Essential
15 Janallstarchuck
If investors included safe-haven assets in their portfolios possibly mistaking them for a hedge, they would potentially inflate their prices in nor...
Top Ten Trends Lead to Gold
14 JanAriana33
This is a good article, and I can agree with many points. I've been investing in gold, particularly the American Gold Eagles for quite some years n...
The Black Swan So Ugly No One Will Talk About It
14 JanS W.
A black swan is a highly improbable event. Obviously the author of the article does not understand that.
Fed’s Balance Sheet Reduction Reaches $402 Billion
07 JanRocco
Every time the FED speaks, gold skyrockets. Just buying some gold every time before the FED makes an announcement and then selling for a quick prof...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS