Perfect Storm Pushing Up Gold Prices

Written by Staff Writer

gold is money 2496347 640Perfect Storm Will Push Gold To $1,400 -Capital Economics/Kitco
"A weak U.S. dollar, falling bond yields and struggling equity markets are creating the perfect storm that will eventually drive gold prices to $1,400 an ounce, according to one research firm. In a report Wednesday, commodity analysts at Capital Economics reaffirmed their year-end target for gold as the market continues to benefit from shifting investor sentiment...

Gold prices are holding on to considerable gains, up nearly 4% in the last five sessions; August gold futures last traded at $1,333.80 an ounce, up 0.38% on the day. 'We have long expected the gold price to pick up strongly in 2019, largely because we thought a slowing U.S. economy would prompt the Fed to loosen monetary policy and that risky assets, including equities, would fall sharply,' the analysts said. The analysts said that a weaker U.S. dollar was the spark that lit the fuse for gold's latest rally; at the same time, the U.K. firm expects the move higher to be sustained by weaker global equity markets....'We expect the price of gold to end 2019 at $1,400 per ounce.'"