Gold Outlook 2019: Factors That Could Support Gold in 2019 – Real rates turn negative: Gold tends to perform well when the inflation rate is higher than the nominal interest rate. Inflation may rise well above interest rates if the US-China trade war escalates, restoring gold’s appeal as a store of value.
Interest Rates
Trump – Attack Via Tweets Comes Week Before Fed Meets on Policy
Gold Silver Reports (GSR) – “The Fed interest rate way too high, added to ridiculous quantitative tightening! They don’t have a clue!” Trump said on Twitter, renewing his complaints about the U.S. central bank a week before it meets in Washington to discuss monetary policy.
China is Buying & Accumulate More and More Gold as the Trade War Drags on
Gold Silver Reports (GSR) – China extended its gold-buying spree, adding to reserves for a sixth straight month, as the protracted trade war with the U.S. hurts growth expectations and boosts demand for a portfolio diversifier.
European Central Bank (ECB) said it would Delay its First Post-Crisis interest Rate Hike until at Least the Middle of Next Year.
Gold Silver Reports (GSR) – The euro climbed higher against the U.S. dollar on Thursday, after the European Central Bank (ECB) said it would delay its first post-crisis interest rate hike until at least the middle of next year. In a move that was well-flagged, ECB President Mario Draghi also offered to pay banks if they borrow cash from the central bank and pass it on to households and firms.
Fed Minutes: No Rate Moves are Coming ‘for Some Time’ Even if the Economy Improves
Gold Silver Reports (GSR) – Federal Reserve officials remained firmly committed to a “patient” policy stance at their meeting earlier this month, saying rates likely will remain unchanged well into the future.
Does Supply and Demand Really Influence Gold Prices?
Does Supply and Demand Really Influence Gold Prices?
Gold is an enigma. Certainly, gold has practical applications. It conducts electricity, does not tarnish, can be drawn into wire and hammered into thin sheets.