Gold: Trade tensions lead to upsurge - NAB
National Australia Bank’s analysis team explains that the gold surged to US$1390/oz, the highest since August 2013, with the US Federal Reserve adopting a dovish monetary policy stance, highlighting ‘uncertainties’ posed by trade and the economy.
“NAB Economics is forecasting two rate cuts in the second half of 2019. Rising trade tensions and the prospect of further deterioration have led to increased levels of risk aversion, further supporting gold.”
“Conversely, a possible trade deal between the US and China at the upcoming G-20 meeting in Osaka might lead to some easing in the gold price.”
“We have upgraded our end-of-year gold forecasts to US$ 1380/oz, up from US$1350/oz, with the prospects of further increases ahead.”
This article is published only for general use basic informatory purposes and should not be considered or depended on as a financial or investment advice. Investors should make sure that they understand the risks and seek independent financial advice at all times. CFDS ARE COMPLEX INSTRUMENTS AND COME WITH A HIGH RISK OF LOSING MONEY RAPIDLY DUE TO LEVERAGE.