For the average investor, gold may be good for diversification and the yellow metal has always outperformed the overall market in times of geopolitical uncertainties. As we know trade war remains the key risk factor in the US and is something that could spread across the globe. Global growth is slowing from an already low base. So this will be a big reason for investors to invest in gold in 2020. The other reason could be the globe is flush with liquidity thanks to monetary policies of most central banks focused on easing, which is likely to push gold prices even higher. It's likely that the bullish trend for gold may continue well into 2020.
A falling dollar benefits the price of gold in two ways. First, most of the gold used in the U.S. is imported. When the dollar is weaker, the cost of imports becomes more expensive, thus fueling a rise in the price of gold. Second, a falling dollar is often seen as a sign of economic or political weakness, which can help trigger global uncertainty. This type of uncertainty is what drives investors to the safe-haven asset of gold.
One of the arguments against gold as an investment is that it doesn’t pay any interest or dividends. In periods of high or rising interest rates, gold can lose some of its lustre’s because stocks, bonds and even savings accounts are paying out cash to investors. However, when rates are low or falling — as they are in 2019 — gold becomes a more attractive investment because the alternatives are not paying much income.
Online gold trading through GULFBROKERS offers investors from across the world access to a safe and secure way to trade in the precious metal. With the help of Contract of Difference, traders can enter a long position, which implies betting that the price of gold will edge higher. Conversely, CFDs make it possible to enter a short position, which entails betting that the price will edge lower. Investing in CFDs does not require the trader to pay for gold storage or roll futures contracts forward every month. Traders also don’t have to worry about getting the timing and size of markets move correctly in order to profit on their trades.
With a lot of benefits, online gold trading enables an investor to potentially make a sizeable gain. Gold has become a universally tradable commodity across the world Therefore; it is simple for an investor to sell his position at any marketplace due to the high liquidity of gold.
Technical Analysis:
This year gold reached a high of $1556 and is now trading around the $1470 levels, is up by around 13 to 14 per cent this year driven by concerns surrounding the US/Chinese trade dispute, Brexit uncertainty and falling global yields. Interestingly, while gold and stocks tend to move in opposite directions, this year they have moved in the same direction. But from last three months the yellow metal trading sideways so we may expect downside correction to $1400/1410 before making further upside move.
Conclusion: Looking into the future, during times of economic uncertainty the value of gold has usually been stable. Uncertainty is a part and parcel of today’s life, gold is one commodity that you are not going to regret investing in. According to gulf brokers, we are expecting a strong upside move to $1550 then $1600 and once it breaks $1600 then $1900 simultaneously after completing the downward correction.
A falling dollar benefits the price of gold in two ways. First, most of the gold used in the U.S. is imported. When the dollar is weaker, the cost of imports becomes more expensive, thus fueling a rise in the price of gold. Second, a falling dollar is often seen as a sign of economic or political weakness, which can help trigger global uncertainty. This type of uncertainty is what drives investors to the safe-haven asset of gold.
One of the arguments against gold as an investment is that it doesn’t pay any interest or dividends. In periods of high or rising interest rates, gold can lose some of its lustre’s because stocks, bonds and even savings accounts are paying out cash to investors. However, when rates are low or falling — as they are in 2019 — gold becomes a more attractive investment because the alternatives are not paying much income.
Online gold trading through GULFBROKERS offers investors from across the world access to a safe and secure way to trade in the precious metal. With the help of Contract of Difference, traders can enter a long position, which implies betting that the price of gold will edge higher. Conversely, CFDs make it possible to enter a short position, which entails betting that the price will edge lower. Investing in CFDs does not require the trader to pay for gold storage or roll futures contracts forward every month. Traders also don’t have to worry about getting the timing and size of markets move correctly in order to profit on their trades.
With a lot of benefits, online gold trading enables an investor to potentially make a sizeable gain. Gold has become a universally tradable commodity across the world Therefore; it is simple for an investor to sell his position at any marketplace due to the high liquidity of gold.
Technical Analysis:
This year gold reached a high of $1556 and is now trading around the $1470 levels, is up by around 13 to 14 per cent this year driven by concerns surrounding the US/Chinese trade dispute, Brexit uncertainty and falling global yields. Interestingly, while gold and stocks tend to move in opposite directions, this year they have moved in the same direction. But from last three months the yellow metal trading sideways so we may expect downside correction to $1400/1410 before making further upside move.
Conclusion: Looking into the future, during times of economic uncertainty the value of gold has usually been stable. Uncertainty is a part and parcel of today’s life, gold is one commodity that you are not going to regret investing in. According to gulf brokers, we are expecting a strong upside move to $1550 then $1600 and once it breaks $1600 then $1900 simultaneously after completing the downward correction.
