With the Fed on tap today, everyone wants to know where gold is likely to go. The expectation is for the Fed to hold interest rates where they are; some strong numbers early last week probably weren’t enough to override unexpected weakness in manufacturing confidence numbers, given the Fed’s more dovish stance lately. So if interest rates don’t change what which direction will the Dollar go?
And what will the effect be on gold? Banks are weighing in with their opinions. TD Securities things it’s too early for a breakout but sees higher prices in 2019. Standard Chartered thinks prices will dip before they risein 2019. ScotiaBank sees growth rates dropping worldwide, and central banks slowly buying gold, which they think will lead to slightly higher gold prices near-term.
So the banks’ consensus opinion is to look for higher gold prices as 2019 proceeds, but probably not get-rich-quick prices. Today’s feature is ScotiaBank’s Metals Monthly paper; we’ll freely admit we don’t always read this but it’s good to check in from time to time. With some metals making new highs now seems like one of those good times.
Continue reading at Scotiabank