Wednesday, 23 January 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--

Gold Looks Good In 2019 But Needs Inflation To Break $1,300 - IHS Markit
Tuesday, 27 November 2018 05:37 WIB | GOLD CORNER |Gold OutlookGold Corner

While the gold market could trade at the top of its current six-month range in 2019, investors should not expect prices to break their orbit, according to one international research firm.

In a telephone interview with Kitco News, KC Chang, senior economist at IHS Markit, said that his firm continues to see gold prices trading between $1,200 and $1,300 an ounce in 2019, with prices hitting the top of the range in the later part of the year.

œI think there are more upside price risks for gold in 2019 than downside ones, he said. œIn this current environment, prices around $1,200 an ounce would be a good investment opportunity.

Chang's comments come as gold prices struggle to find mometum, holding critical support around $1,220 an ounce. December gold futures last traded at $1.222.70 an ounce, nearly flat on the day.

However, Chang added that the market is missing one key ingredient that would send prices through $1,300: inflation.

œInflation expectations will remain well anchored next year, he said. œIf gold is going to break its range, inflation needs to rise well above 3%.

Although tame inflation won't be enough to drive gold prices out of their range, Chang said that there is enough global financial instability to keep a safe-haven bid in gold through 2019.

In a recent report, IHS economists warned that growing volatility is the latest threat to what they see as weak global economic activity in 2019.

œThe recent surge in financial volatility”a de-facto tightening of financial conditions--is an unwelcome addition to these threats to global growth, the economists said. œEven without a full-blown bear market, the combined effects of policy uncertainty and large financial gyrations are hurting business sentiment and capital spending.

Looking at U.S. economic growth, IHS sees the domestic economy expanding 2.7% next year, down from 2.9% growth expected this year. The firm said that the U.S. economy will start to slow as the stimulus effects from tax cuts wear off.

Chang noted that a slowdown in the U.S. could impact U.S. interest-rate expectations and in turn U.S. dollar strength, which should prove to be bullish for gold next year. Currently, IHS is forecasting three rate hikes next year.

œThe Fed™s decision around three or four rate hikes next year is going to be very much data dependent, he said. œIf markets start to anticipate fewer rate hikes in 2019 and 2020, that could be enough to drive gold out of my forecasted range.

Source: Kitco

RELATED NEWS
Gold To Top $1,300 In Next 3 Months, Rise 10% In 2019 - Goldman Sachs...
Monday, 14 January 2019 22:00 WIB

Emas akan terus bersinar sebagai aset safe-haven dengan harga terdorong ke atas $ 1.300 per ons dalam tiga bulan ke depan, menurut perusahaan investasi raksasa Goldman Sachs. Dalam sebuah catatan kep...

Outlook 2019: The Most Bullish Views So Far...
Monday, 7 January 2019 11:30 WIB

Para bulls emas kembali. Setelah setahun melihat harga emas lebih lemah, investor dan analis sama-sama mengadopsi optimisme baru untuk tahun baru. Meskipun sentimen dalam seri Outlook 2019 kami telah ...

Gold Will Rally 22% In 2019, Outperform Everything...
Monday, 31 December 2018 22:40 WIB

2019 akan melihat awal siklus bull baru untuk emas dan mendorong logam hingga level $ 1.500 per ounce, kata E.B. Tucker, direktur Metalla Royalty & Streaming. œUntuk menghasilkan banyak uang di...

CPM Group Sees Gold Averaging Near $1,300/Oz In 2019...
Monday, 17 December 2018 21:58 WIB

CPM Group melihat harga emas untuk naik tahun depan seiring Federal Reserve memperlambat laju kenaikan suku bunga AS, namun konsultan itu tidak mengharapkan logam kuning untuk lari lebih jauh ke atas ...

Wall St., Main St. Expect Gold To Keep Shining...
Monday, 10 December 2018 13:04 WIB

Wall Street dan Main Street keduanya melihat emas untuk membangun pergerakan minggu lalu untuk bergerak lebih tinggi selama minggu depan, berdasarkan survei emas Kitco News. Pengamat memperkirakan la...

LATEST NEWS
Russia Presents Info on Missile US Says Violates Pact

The Russian military on Wednesday rolled out a new missile and released its specifications, seeking to dispel the U.S. claim that the weapon violates a key nuclear arms pact. The military insisted that the 9M729 land-based cruise missile conforms...

Stocks Rebound on Strong Corporate Earnings; IBM Leads Dow Gainers

Stocks gained ground Wednesday, but traded off their session highs, after getting a boost from a round of upbeat earnings from some corporate heavyweights and as investors continue to monitor developments regarding ongoing U.S.-China trade...

U.S. stocks open higher, lifted by upbeat earnings

U.S. stocks opened higher Wednesday, taking back a chunk of the previous day's decline, as investors cheered upbeat earnings as fourth-quarter corporate results continue to roll in. The S&P 500 rose 0.5% to 2,645.39, the Nasdaq Composite...

POPULAR NEWS
Gold dips on firm dollar and rise in risk appetite
Tuesday, 22 January 2019 05:11 WIB

Gold slipped to its lowest in almost a month on Monday as a firm dollar and greater risk appetite outweighed support from an expected pause to...

Gold Prices Fall to 2019 Low
Monday, 21 January 2019 20:07 WIB

Gold prices declined on Monday, falling to their lowest level of the year as investor risk appetite held up despite the latest data showing China's...

Emas berakhir sedikit lebih tinggi terkait meningkatnya ketegangan dagang AS-China
Wednesday, 23 January 2019 02:57 WIB

Emas berjangka berubah lebih tinggi pada penyelesaian Selasa dengan meningkatnya ketegangan menyusul laporan bahwa AS membatalkan pertemuan dengan...

Gold Prices Bounce Off 3-Week Low Amid Global Growth Woes
Tuesday, 22 January 2019 20:28 WIB

Gold prices bounced off their lowest level in around three weeks on Tuesday, as worries about a global economic slowdown boosted appetite for safe...