As the S&P 500 hit another record high on Tuesday, Capital Economics is saying that a major equities’ sell-off is coming by year-end, which will drive gold prices to six-year highs.
“We think that global growth will remain subdued and forecast that the S&P 500 will fall to just 2,300 by end-2019,” economists at Capital Economics wrote on Tuesday. “Surging safe-haven demand is likely to drive the prices of both gold and silver higher this year.”
Gold is likely to rise to $1,400 an ounce by the end of the year, said Capital Economics while pointing to slower global growth throughout this year.
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.