In this risk-prone market, environment hedging is as important as ever, with commodities like gold eyeing the $1,400 level this year, according to the latest update from Scotiabank.
Gold has been stuck in a four-year lull, said Scotiabank commodity strategist Nicky Shiels, noting that 2019 might finally be the year when the metal breaks out of its narrow trading range.
“We feel we are in a good spot for the next commodity cycle. Gold is perking up this year, trying to break out of its four-year cycle. It is viewed generally as a hedge to the dollar alongside to being a hedge to inflationary policies and geopolitical risks. I believe gold has a chance of reaching $1,400 this year,” Shiels said.
Goldplat plc (LON:GDP) is an AIM-listed, profitable gold recovery services company with two market leading operations in South Africa and Ghana. The Company also has a small gold mining and exploration portfolio in Kenya, Ghana and Burkina Faso.