Gold prices hit a new high in April 2019

April has been a month of continued growth for the price of gold, with the precious metal reaching new heights in recent weeks. The price of gold has risen by approximately 7% since the start of the month, reaching a high of $1,350 per ounce.

The average price for gold in April 2019 was 1.285,95 USD an ounce. The lowest was 1.272,40 USD an ounce while the highest was 1.308,05 USD an ounce. Average gold price in 2019 was $1,393.34.

Peter Krauth, a Resource Specialist at Money Morning, predicts that the price of gold will increase. He considers the recent dip in gold prices as a positive sign for a rebound this year. From August to mid-February, gold experienced a 14% rebound, and if it had been a larger increase, the correction could have been more severe.

Krauth states that gold prices don’t always rise linearly and that the Fed’s dovish outlook and reduced real rates will drive higher gold prices this year. Historically, gold hits a low point around mid-March and starts to rise through May. The recent bounce back of gold to around $1,286 is a strong indication that the correction is over.

The dip in gold prices was correlated with a five-day delay in the US Dollar Index (DXY), with the dollar hitting a low a few days after the gold price peak and peaking shortly after gold hit its recent low. The CFTC Commitments of Traders report showed a 62% net decrease in gold futures, but gold continues to remain stable despite strong sales pressure. According to historical data, gold generally reaches a bottom in the middle of March and then rallies through May. Krauth predicts a repeat of this pattern for 2019.

This surge in gold prices can be attributed to several factors.

including increased demand for safe-haven assets in the face of ongoing geopolitical tensions and economic uncertainty. The US-China trade dispute, Brexit, and the continued threat of a global recession have all contributed to increased demand for gold as a stable and secure investment.

In addition, the Federal Reserve’s recent decision to hold off on interest rate hikes has also impacted the price of gold. The weakened US dollar, combined with low interest rates, has made gold a more attractive option for investors looking to hedge against inflation.

Despite the recent gains in gold prices, many experts predict further growth for the precious metal in the coming months. With the global economy remaining volatile, demand for gold is expected to remain strong as investors seek stability in uncertain times.

Investors looking to invest in gold may consider adding the precious metal to their portfolios through physical ownership or exchange-traded funds. However, as with any investment, it is important to conduct thorough research and seek professional advice before making a decision.

In conclusion, the recent surge in gold prices is a reflection of ongoing geopolitical tensions and economic uncertainty, combined with the Federal Reserve’s dovish stance on interest rates. While short-term fluctuations may occur, many experts are optimistic about the future of gold and predict continued growth in the coming months.

By Alexandre Laurent

Alexandre Laurentl is working in the jewelry and investment gold since 2002. Alexandre graduated from The Normandy School of Business and from the University of Perpignan a Bachelor of economics in 1995.

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