On Monday, the dollar has strengthened its positions, while the European currency weakened after the Head of the European Central Bank Mario Draghi made a statement regarding the increase of state debts and the economic growth slowdown in the EU countries. Addressing the EU Parliament, Draghi noted that inflation would increase in the near future.
On Monday, November 26, the cost of an ounce of gold was $1,222.
On Tuesday, the specialists of the largest French bank Natixis published an economic forecast, assuming that the price of gold would increase to $1,275 per ounce in 2019. Their optimism has been based on the uncertainty surrounding the financial markets and the slowdown of the global economy.
Analysts of the US financial company Fitch Solutions forecast high prices for the precious metal, predicting an increase in the global production of gold:
"We project that the global production of gold will increase. We expect a further rise in gold prices with an average of $1,400 per ounce by 2022."
Tuesday became the day of further decline in the European currency and the dollar’s growth due to the US possible imposition of 25% duties on imported cars. The changes did not affect only two countries: Mexico and Canada.
On Tuesday, November 27, an ounce of gold cost $1,215.
On Wednesday, the US analytic company S&P Global Market Intelligence (SPGMI) published a report on non-ferrous metals. According to the data, almost 50% of the mining industry’s budget is spent on gold prospecting. The report indicates that gold ranks high among all the other metals.
The production of the 25 largest gold mining companies increased by 18% in 2018. Gold Fields, Barrick and Newmont are in the lead with a revenue ranging from $163 to $221 million.
On November 28, market participants were in anticipation of the G20 summit in Argentina, where a meeting between the US President Donald Trump and Chinese President Xi Jinping was held. Experts do not predict a positive outcome in resolving trade issues between the two powers.
On the same day, the head of the Federal Reserve System Jerome Powell commented on the interest rates, considering them to be low. As a result of Powell's statements, the price of dollar decreased against other currencies, affecting the position of gold right away.
The cost of gold on Wednesday, November 28, was $1,221 per ounce.
On Thursday, analysts of the French conglomerate Societe Generale appealed to central banks, calling upon buying gold in connection with a forecast gold price increase. By the end of 2019, the price of gold will rise to $1,300 per ounce. Buying gold helps surviving the unstable situation, as well as the tightening of the Fed’s policy and the imbalance within the financial markets.
On Thursday, November 29, an ounce of gold cost $1,224.
Experts look back at the year’s major events, predicting a change in the position of gold by 2019. Edward Egilinsky, Managing Director of the Direxion alternative investments fund, has noted that the price of the yellow metal would depend on the outcome of the ongoing trade war between the US and China, as well as the monetary policy in the United States.
After the Fed’s top officials confirmed the possibility of raising interest rates, the uproar had been caused in the financial market, expecting it to happen soon. The published protocols for November 2018 inform about tough financial conditions, uncertain economic prospects and high levels of the US companies’ indebtedness.
On Friday, November 30, the noble metal cost $1,222 per ounce.
On Monday, December 3, the price of an ounce of gold reached $1,227.
President of Euro Pacific Capital Inc, analyst Peter Schiff is confident about the price increase of gold in the long-term perspective. According to the investor, buyers of gold protect themselves from future harm. According to Schiff's forecast, upon the stock market collapse, prices will soar, initiating a gold rush.
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