Gold had a mixed year in 2018, quickly peaking around $1,366 in January, but falling as low as $1,160 by August. For a while it seemed that the correlation between risk-off appetite and gold prices had broken, with the yellow metal overlooked even in times of heightened uncertainty. But after a 7% recovery since early November’s sell-off, will 2019 be the year gold regains its shine?
2019: A risky year that sees investors reunited with gold?
There is likely to be plenty to rattle market confidence in 2019. US-China trade talks may not go smoothly – President Donald Trump has proven how changeable he can be several times in the past – and there’s still a lot of uncertainty around Brexit, and everyone is carefully watching the world economy to see if it stutters.
These high-risk events, combined with a softer outlook for real yields, could provide the impetus gold needs to return to the highs of $1,366 seen at the beginning of 2018.
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.