Newsmax: Citi Commodities Expert Sees $1,400 Gold by End of 2019Adam Gardiner
With the price of gold still hovering around the $1,300 per ounce range, many investors are impatiently waiting for a breakout. As with any other investment, patience is a virtue. Investing in gold is a long-term strategy, not a short-term get rich quick type of investment. But those investors who have been patient and who have held on to gold should be richly rewarded this year as gold prices are set to rise.
Wall Street analysts are almost universally bullish on the price of gold throughout the remainder of the year, with continued strong demand from central banks around the world providing much-needed price support. Ed Morse, head of commodities research at Citi, expects gold to reach $1,400 by the end of the year. Last year nearly set a record for central bank gold purchases, and this year could end up surpassing it. While Russia and China are the big players in the market, numerous emerging market countries also took advantage of gold’s affordability to increase their exposure to gold and diversify their reserves.
Most analysts are also expecting stock markets to weaken later this year, which will help contribute to increased gold demand in the United States. Gold demand in Europe was a major driver in gold’s rise in price last year and that demand should continue to remain strong this year, particularly given the continuing concern about Brexit and its effects. With Brexit now delayed until October, expect to see strong sales originating from the UK.
With Germany about to slip into recession, if it hasn’t already, and concern over the future of Deutsche Bank, gold demand should be quite strong on the continent too. And just in case gold IRA investors didn’t think $1,400 was a strong enough target, Goldman Sachs expects gold to reach $1,450 an ounce by the end of the year. That should give investors some hope and confidence that their choice to invest in gold is the right one.