Gold prices are hitting eight-month highs, thanks to investors looking for an alternative to stock market volatility. Prices are also being supported by a weaker dollar and buying by global central bankers and Asian jewelry buyers.
Gold futures closed above the key $1,300 per troy ounce this week, and the February contract closed at a high of $1,308.90 Tuesday. Gold had fallen into a slump last summer and had been held back by a soft demand picture
The changing demand dynamic, and a flight to safety by skittish investors, has changed the prospects for gold and it could perform much better in 2019. “This could be gold’s year,” said Suki Cooper, precious metals at Standard Chartered Bank. Since mid-November, when gold was at $1,200, it has gained about 9 percent.
Some analysts expect the precious metal to take a rest and pull back in the near term, but then continue to edge higher later in the year and head toward $1,400 per ounce towards the end of the year.
“We expect a pullback in the coming months,” said Cooper. “We think the price is more likely to make a sustained move higher in [the second half of the year].
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