The U.S. Federal Reserve is slowing the pace of interest rate hikes. This means that gold prices have a chance to go up in 2019. Experts believe and agree that the price of gold will go up to about $1,300. Since the economy will remain strong, no one is expecting gold to run away on the upside.
Next, the demand for gold should remain strong in the first quarter of each year due to seasonal factors. For example, celebrations in key gold-consuming nations such as China and India underpin prices.
What Moves Gold Prices?
It is important to note that the price of gold can be influenced by investor behavior, supply, and demand. At this level, things seem simple enough but wait; the way those factors work together, however, can sometimes be counterintuitive. In some cases, investors may think of gold as an inflation hedge. This has some common-sense plausibility. You see, when it comes to currency, the value of paper money drops if more of their kind is printed. All these happens while the supply of gold remains relatively constant. If this is the case, then mining does not add much year to year.
How to Keep Track of Gold Prices
If you are looking to keep track of gold prices, it is recommended that you look at how well the economies of certain countries are performing. If one's economic conditions worsen, the price of gold will typically rise. After all, gold is a commodity that's not tied to anything else. Hence, it makes the precious metal a great diversifying element for one's portfolio.