What will be the price of gold in 2018? Here are the experts’ forecasts ♦ ︎
Will 2018 be another year of gold? Who owns jewels will be pleased to know that the value of bracelets, necklaces and rings made with yellow metal in 2017 have been revalued by about 20% on average, even if with considerable fluctuations. The news, of course, concerns even more who the jewels produce them, in addition to those who see gold as an investment. And for 2018?
According to analysts of the banking giant Citi, the price of gold could remain at this level or grow. Tensions around the world, from North Korea to the Middle East, could push the price. In short, wars and catastrophes, or sudden stock market crack remain the fuel to support the prices of gold and, therefore, also the value of jewelry for those who own them. But they can also indicate the possibility of a price increase for those who want to buy jewels.
The forecast of the World Gold Council
According to John Reade, Chief Market Strategist of the World Gold Council, “there are several reasons to believe that gold could keep the trajectory upward.” The analyst thinks that monetary policy will continue to be an important driver of gold demand, given that the Federal Reserve (the Fed) has anticipated its intention to increase rates further next year. In addition to monetary policy, there are two other factors that are potentially important for gold: the performance of the US stock market and the dollar’s price. The end of the long upswing on Wall Street could reignite the demand for gold. And if the US dollar will be less strong, gold could benefit.
Other factors that can support the demand for gold: China, the world’s largest gold market, has avoided the “hard landing” of the economy, which many had predicted 18 months ago, and is expected to grow at a rate just in 2018, around 6.4%. The Indian economy is recovering from the 2016 monetary shock and the adjustment to the tax on goods and services launched in 2017. India, another country that buys a lot of gold, should be one of the fastest growing countries in the world in 2018, expanding at an even faster pace than it was between 2012-2014. Finally, the US jewelry market, the third largest in the world, could benefit from continued economic growth and consumer confidence. In short, even 2018 could prove to be a golden year. Federico Graglia