Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Top Trade Idea 2019: Long XAU/USD – Gold to Glisten in 2019

Top Trade Idea 2019: Long XAU/USD – Gold to Glisten in 2019

Rich Dvorak, Analyst

A safe haven asset that lost its luster in 2018 looks set to gain back its glisten. After declining 11 percent over the first 8 months of the year, Gold has started to stage a comeback with the commodity back up nearly 5 percent to 1242.30 as of December 14. Previously overlooked as a yield-less investment in a rising interest rate environment, investors may turn back to Gold if global risks materialize. Aside from investors fleeing international uncertainties surrounding political instability and slowing economic growth, a depreciating Dollar and inflation overshooting expectations could bolster bids for the precious metal next year.

With the current phase of the bull market cycle drawing parallels to the 9th inning of a baseball game, a faltering economy could cause the Federal Reserve to pump the breaks on its path to normalization. This looks to occur when other global central banks are geared up to begin their own tightening agendas which may drag down America’s currency making XAU/USD more valuable. Rising wages due to an increasingly tight labor market combining with higher costs from tariffs and a possible infrastructure spending bill bodes well for inflation overheating – thus setting up Gold as a top trading opportunity for 2019.

To see all the of the analysts Top Trade Ideas for 2019 and Top Lessons from 2018, download the guides on the DailyFX Trading Guides Page.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES