Gold $1,400 an ounce coming in 2019

Gold $1,400 an ounce coming in 2019 from Scrap Register

Gold prices are closing in on a bottom, with a significant recovery coming in 2019, said ABN Amro in its monthly commodity update.

The August Comex gold futures ended the week on a sour note, touching a fresh 12-month low on Friday and briefly trading at $1,237.50 an ounce before slightly rebounding to $1,241.40, up 0.02% on the day.

The metal was hurt by lack of risk aversion in the marketplace as world stock markets, including major U.S. stock indexes, hit multi-month highs last week.

In the meantime, the U.S. dollar index, a major driver for gold prices, kept rising, last seen trading at 94.74, up 0.07% on the day.

“Higher US dollar, looming trade war between the US and China, downward adjustment in eurozone outlook and the slide in the Chinese yuan have contributed to price weakness,” ABN Amro senior precious metals and diamond analyst Georgette Boele wrote in the report.

But, Boele noted that a price bottom is near, estimating for gold to end Q3 at $1,225 and then rise to $1,250 in Q4.

“Weakness in precious metal prices is not over yet, but prices are close to the bottom,” she said.

The main obstacles for gold this year will remain rallying U.S. dollar, additional Federal Reserve rate hikes, rising U.S. Treasury yields, as well as the escalating trade war tensions, which so far have not benefitted gold at all, according to the Dutch bank.

The good news is that investor patience will pay off next year, as gold prices have a chance to rally all the way up to $1,400, wrote Boele.

The precious metal will see a boost from an end to trade war rhetoric and a weakening U.S. dollar, which is projected to reach its highest level by the end of the year and then start dropping.

“Later in the year we expect U.S. dollar and 10y U.S. Treasury yields to peak, the fall in the yuan to come to an end and a significant escalation of a trade conflict to be averted. Therefore precious metal prices will probably recover,” Boele stated.

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Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.