After a lackluster 2018, gold is beginning to shine again in 2019. Last year, the price of gold fell about 11 percent, but this commodity up 5 percent to 1242.30 an ounce, has made a comeback.
Investors perceive gold as a hedge that doesn’t yield long-term returns when interests rates rise. However, with an expected rise in worldwide risk, gold is starting to gain in appeal. Political instability and an economic slowdown could cause a sea-level change in commodity investments, such as precious metals. A depreciating dollar and rising inflation could cause even more investors to turn to gold stock and futures.
The XAU/USD live gold to dollar ratio is likely to increase despite a recent bullish market. If the political situation remains unstable, the Federal Reserve could fold up the roadmap to normalization. This may happen when central banks around the global adopt tightening policies that can slow America’s currency policy. Rising wages resulting from a tightening labor market along with higher costs due to tariffs and increased spending on infrastructure point to overheated inflation, making gold the top trade recommendation for 2019.
Spot Gold Pricing
According to gold market experts at Gold Rate, determining the retail price of gold is dependent on a series and bid and ask quotes originating in the retail market. Dealers in a wide range of countries contribute to the calculation at major commodity trading firms. After adjusting for taxes, an average quote can be formulated. This is what determines the rate paid by jewelry makers (and ultimately buyers).
“The spot price of gold determines the current price of one troy ounce of gold and is based upon gold in its unprocessed state before being sold on to a bullion dealer and is used to determine the cost of gold in coin or bar form. Spot price can change frequently and without notice. Factors that impact on the fluctuation of spot gold prices include supply and demand, world events, and speculative forecasting of the gold market, according to Gold Rate.
Gold is traded worldwide every moment of the day in Tokyo, Hong Kong, Zurich and London. This directly impacts the spot prices of gold. Overall, gold is a stable commodity, the standard by which economies and currencies are compared. Therefore, investing in gold is never a bad way to go.