Gold price holds value against a weaker dollar

Gold prices remained steady on Thursday, hitting their highest point in two weeks and with the dollar showing signs of weakness precious metal could make significant gains in the months ahead.

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.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider.You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.