Gold Prices have Recovered: Gold Demand Rises in China
SMC Global, a financial service company, says that gold is seeing some profit today. Gold gains firmness from a weaker US dollar, unchanged interests, and limited options. These are kept by the European Central Bank at its latest policy meeting and heightened geopolitical tensions. Moreover, the precious metal price is currently fixed at $1562.70.
Despite the lows, Gold has been seeing for the past few days; it has now found some support from Asia, particularly China. Newly identified coronavirus has disrupted the country. Fast-Moving influenza has spread not only across China but to countries as far as Japan, Thailand, Singapore, and the US. Rising fear over the spread of the virus and general uncertainty supported the demand for gold in China. This created a risk-off market sentiment with traders and investors in Asia and pressured global stock-markets. Correspondingly, it has increased demand for the safe-haven asset; gold.
Several Factors had an Impact On Gold
The geopolitical and economic drivers impacted gold prices in 2019. This included the US china trade tensions, Brexit, and the US Federal Reserve’s monetary policy, tensions in the Middle East, during the conflict between the US and Iran. The conditions lead to even higher gold prices, as the metal has been a preferred asset during times of political and economic uncertainty.
Is the Metal Price Going to Maintain It’s Place?
Gold prices may remain more Contrarywise in the near term. Gary Wagner, the Executive Producer of The Gold Forecast, calls it the “Corrective phase.”
He notes that even though we see gold moving higher, the correction is still active.
Lukeman Otunuga, the senior research analyst at FXTM, says that created sentiment in Asia is likely to accelerate the flight to safety with gold. It will be testing $1568 in the short term. But if $1,555 proves to be an unreliable support level, prices could slip back towards $1,545.
Rhona O’Connell, INTL FCStone’s head of market analysts for EMEA & Asia regions, points out that gold has potential for occasional bursts upwards. Still, it will probably be unlikely to reach the 2019 record levels. Some countries continue to diversify currency risks and see gold as stabilization.
Experts think that the 2020 trading range for the metal is set between $1,500 and $1,600, with a risk tilted to the upside. Investing Haven makes a promising forecast about gold prices for 2020-2021. According to it, the gold market is the most attractive in the first months of 2020, and it points to a price target of $1,715.
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