Investors prepared to hold gold over the long term will be encouraged by the latest findings from the Office of the Chief Economist at Australia's Department of Industry, Innovation and Science.
According to its latest forecast, the price of gold will be driven by the metal’s safe haven status to an average of USD 1,350 an ounce in 2019.
Following a predicted drop in the price of gold in 2020, declining world mine supply will help it regain momentum in 2021-23.
Publishing details of its analysis in the March 2018 edition of Resources and Energy Quarterly, the Office says it expects Australian dollar gold prices to remain steady over the outlook period as higher world prices offset unfavourable moves in the exchange rate.
According to experts, gold can play a valuable role in any investment portfolio. An asset that’s been shown to withstand depreciation over time, gold has traditionally displayed a negative correlation to equities and may play a role in mitigating overall losses in volatile markets.
