Spot gold has stood strong against a weaker dollar, with the precious metal’s spot price hovering at around $1228 – one of the highest levels it has seen since 11 November where it hit $1230 per ounce.
The price of gold is tracking the dollar price, with the dollar index, which measures the greenback against a basket of six major currencies, down 0.2% on Thursday.
‘Currently, gold is unloved,’ CEO of Sharps Pixley Ross Norman told IG TV. ‘Physical flows are the worse I’ve seen for 20 years or so and that I, if you are a contrarian, not a bad thing, but here are signs that things my change.’
‘Technically we have found a floor,’ he said. ‘YTD gold is off 7% and conversely the dollar is up.’
‘I think a lot of gold’s problems relate to the dollar strength we have seen through most of this year, but that might be about to change,’ he added. simon
Gold offers investors a safe haven
The stock market faces a lot of uncertainty with a myriad of socio-economic factors leading to sharp declines across the stock market, with the tech stock sell-off this week erasing gains on the Nasdaq Composite and S&P 500.
In these uncertain times, gold prices could rise, with the precious metal typically viewed as a ‘safe haven asset’, according to Managing Director of Brookville Capital Simon Popple in panel discussion for IG TV.
‘Gold is going through some very exciting times,’ Managing Director of Brookville Capital Simon Popple told IG TV. ‘We are in unchartered territory in a number of areas; we’ve got Brexit, we’ve got huge debt in the US, we’ve got the fed rate going up.’
‘At the moment, it doesn’t seem to have reacted very much to these events, but I think 2019 could be very interesting,’ he added.