Is The Gold Price Heading Higher? IG TV Interview GoldCore

Is The Gold Price Heading Higher? IG TV Interview GoldCore by Mark O’Byrne – GoldCore

Is The Gold Price Heading Higher? IG TV Interview GoldCore

Research Director at GoldCore, Mark O’Byrne talks to IG TV’s Victoria Scholar about the outlook for the gold price.

Until just a few weeks ago, market commentators were taking bets on when (rather than if) gold would reach the psychological $1400 mark. However, the surge in volatility and market maelstrom has raised questions about the broad direction of commodities.

The Bloomberg Commodities Index (BCOM) slumped more than 5% in the space of a fortnight, dragging gold down with it. Volatility’s dramatic resurgence amid nervousness in the equity market is, at least temporarily, outweighing gold’s support from the twelve-month trend of dollar depreciation.

According to traditional market theory, gold is a safe haven. The precious metal is inversely correlated with risk. As investors take risk off the table, gold prices should catch a bid. However, it appears that this correlation has temporarily hit a stumbling block.

Last week was characterised by sharp declines in US stocks, reverberating through global equity markets. Even after a late rally into Friday’s close, the S&P 500 still shed more than 5% in its biggest weekly drop in more than two years. Meanwhile, in another confrontation with traditional market theory, bonds and equities appear to be moving in the same direction. The yield on the ten-year treasury, which is inversely correlated with bond prices, has climbed up to a four-year high. With nervousness in equities sparking risk-off sentiment and bond prices under pressure, gold nonetheless still struggled to move higher. The question is whether the concerns around both asset classes will encourage investors to buy gold.

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Mark O'Byrne

I founded GoldCore more than 10 years ago and it has been my passion and a huge part of my life ever since. I strongly believe that due to the significant macroeconomic and geopolitical risks of today, saving and investing a portion of one’s wealth in gold bullion is prudent. I have been an Executive Director in GoldCore since its foundation and today I am Marketing and Research Director. As our customer base grew both domestically and internationally we were receiving a steady stream of requests from our clients and wider public for detailed analysis of the precious metals market. To meet this demand, I stepped into the Research Director’s role and am responsible for helping to inform and educate our clients and followers on how to protect and grow their wealth through owning gold and silver bullion.