Gold may 'sky-rocket' on weak dollar and rising geo-political tensions

Bullion has risen 11% this year

Tom Eckett
clock • 1 min read

Gold's strong run could continue as the US dollar weakens and investors seek safe-havens in the face of increasing geo-political risks, according to Prestige Economics.

The price of gold bullion has risen 11% this year as investors look to the commodity as a refuge from the uncertainty surrounding US President Donald Trump's political and economic policies. Gold bullion rose 0.8% to $1,296 per ounce on Monday, its highest level since 9 November, but has since fallen back. Bullion is currently trading at $1,287 per ounce. Jason Schenker, founder of Prestige Economics told Bloomberg: "Gold is going higher here. We see a gradually weakening dollar on trend. "Although we expect two more rate hikes this year - September, December - and four rate hikes ...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Commodities

First Eagle Investments' Max Belmont: Gold as a strategic portfolio asset

First Eagle Investments' Max Belmont: Gold as a strategic portfolio asset

'Potential hedge for investors'

Max Belmont
clock 23 October 2024 • 3 min read
HL's Derren Nathan: Oil and gold prices have spiked as Middle East tensions reach boiling point

HL's Derren Nathan: Oil and gold prices have spiked as Middle East tensions reach boiling point

'$100 mark not out of the question'

Derren Nathan
clock 04 October 2024 • 4 min read
UBS AM launches carbon credit ETC

UBS AM launches carbon credit ETC

0.75% TER

Sorin-Andrei Dojan
clock 03 June 2024 • 1 min read
Trustpilot