By : Kenneth De Zilwa
Gold has lost its value from its high of USD 1858 per ounce as at August 2011 to its current levels of USD 1225 January 2019
The markets do seem to read more into dollar positive news than anything else and thus the sell off in Gold (XAU) now seems to be now nearing its end with further global weakness trickling into the global markets. Any sign of a global meltdown could spur a rally in Gold as that is the safe haven when times are uncertain.
The geopolitical tensions between China and US too caused further shocks in global markets. More so in stock markets. As we saw global Stock markets fall by 16pct in 2018, and metals prices slumped to their lowest in a year, however with signs of a trade deal on the table between US and China we could see metals gain in the short term. Econsult expects Gold to test USD 1350 before we see the next move.
Recommendation by Econsult – We feel that the bottom for is safe and that a short burst in Gold is very much on the cards. So we would recommend to buy Gold for a rally to USD 1400