The price of gold fluctuates with the economy. Get gold price predictions for 2019 here so you can make a great investment decision.
The oldest known gold coin in the world was created more than 2500 years ago in Western Turkey. Gold is coveted, eaten, worn, mined and hoarded. Throughout the world, it is valued for its beauty, use and rich history.
Throughout history, men and kingdoms went to war for it, plundered the New World and supported whole civilizations with it. Even in the modern day, people continue to hold gold for various reasons. It's a smart addition to any portfolio against economic uncertainty.
If your investment strategy includes holding gold, you need to keep an eye on market fluctuations. Here are our gold price predictions for 2019.
Gold Price Predictions for 2019
Unlike the U.S. Dollar, Euro, art or other assets like stock, gold has maintained its value for centuries. People see gold as precious and special. It's beautiful, useful and difficult to find.
Given the unstable nature of countries and governments, it is a way to preserve wealth from one generation to the next. Gold traditionally has a negative correlation to the stock market and other paper assets. The gold price was great in the 1970's for example, but the stock market was terrible.
The 80s and 90s saw the stock market reach unprecedented heights, but gold prices plummeted. The first part of the 2000s saw stocks climb and fall with gold zigzagging roughly opposite.
Investors combine gold with other financial instruments to reduce the overall volatility and risk. 2019 started out with stock market uncertainty and a rising price for gold.
The Correlation Between the Euro and Gold
There is a very strong correlation between both assets. Since 2013, the Euro has telegraphed a clear directional indication for gold. For 2019, the uncertainty of Brexit has moved the Euro into some unsteadiness. If the Euro drops precipitously, expect gold to feel the pressure.
In the U. S., the Federal Reserve interest rates make a difference in gold price predictions. After a decade of historically low interest rates, rates are creeping up again. Although higher interest rates tend to depress the price of gold on the announcement, gold prices tend to rise afterward.
As equities falter, long term prospects for gold look good. Some pundits even predict record-breaking highs by the end of the year. Of course, there are as many experts predicting a more bearish angle. The Chinese government is buying and hoarding gold right now, as are the Swiss.
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