Gold is likely to end the year at $1,400
It is expected that gold will end the year on a strong note owing to the Federal Reserve’s lower interest rates coupled with the advantage from global uncertainties like economy and geopolitical issues like trade war between U.S. and China. Often gold is considered to be safe heaven asset that is one of those assets that tend to retain its value during market turbulence.
On Tuesday, spot gold was trading at about $1,286.646 an ounce. Even though gold prices have long stuck in the $1,217 to $1,330 range, but analysts believe that these could reach $1,400 by the end of the year.
This positive outlook is mostly boosted by Federal Reserve’s decision not to hike interest rates this year. Further, more and more central banks in Poland, Hungary, the Philippines, and China are diversifying their reserve. Last year, central banks purchased a reported 650 metric tons of gold, an amount that accounted for 15% of the global market.
