Gold still caught in year end limbo seesawing either side of $1475
Gold still caught in year end limbo seesawing either side of $1475for USA Gold
Gold inched higher in quiet overnight and early US trading as financial markets continued their slow wind-down into the holiday break. The yellow metal is up $1 on the day at $1477. Silver is level at $17.01. Precious metals are on the back burner at the moment as hope for reconciliation between China and the United States on trade and the positive effects of the Fed’s money-pumping operations remain open questions. Gold, as a result, continues in a kind of price limbo at the moment seesawing on either side of the $1475 mark and awaiting a clearer sign of where we might be headed next.
The World Gold Council recently published a review of gold’s past year and a forecast for 2020 by its director of Investment research, Juan Carlos Artiga. The World Gold Council focuses on the demand side of the fundamentals’ ledger. Artigas sees many of the trends that contributed to strong offtake this past year continuing into next – financial and geopolitical uncertainty, strong central bank demand and high price volatility. “Gold has historically performed well in the year following Fed policy shifts from tightening to ‘on-hold’ or ‘easing,’” says Artigas – “the environment in which we currently find ourselves. In addition, when real rates have been negative, gold has historically returned twice as much annually as the long-term average, or 15.3%.” [Emphasis added.]