Are you looking to get into the precious metals market?
You’re always looking for ways to save your pennies — but lately, you want to make your money appreciate.
Investing in gold offers stability and protection against inflation that many other opportunities cannot. However, you want to make sure that you buy at the right time.
So, when it comes to 2019, should you be bullish or bearish on gold?
Check out this year’s gold price predictions to find out.
The Fed and the Gold Price Forecast
The Federal Reserve Bank has a huge impact on the overall gold forecast.
By the middle of 2019, around June and July, many experts feel that the Fed will become more restrictive when it comes to the Fed funds rate. The Fed was a bit tougher on gold in 2018 than in the past.
However, this could bode well for 2019, as many feel the Fed is now becoming more dovish.
This means that, though it may take longer than you’d like for you to see profits on your gold investment, if you can wait till the end of 2019 you’ll see the kinds of numbers you like.
The Dollar and Gold
Towards the end of 2018, many investors became bearish on gold because the United States dollar was so strong.
The stronger the dollar, the less attractive precious metals become.
However, experts feel that the era of the ultra-strong dollar will come to a close in 2019. This will be a good thing for the gold price, which means that now is the time to buy.
In other words?
Even if gold isn’t an attractive purchase now, soon, the weakening dollar will make it increase in value. Now is the time to act.
The Potential for Rising Prices
Now, it’s time to address the singular potential downside of gold price predictions for 2019: the fact that they’re likely to go up soon — and hike rather sharply, as well.
This is because, due to political instability and a weakening dollar, investors will look to precious metals because they’re a safe haven.
In the past couple of years, investors have been a bit liquid on gold, because they’ve been flocking to high-yield stocks. But the time for high profits is coming to a close.
Now, people are much more concerned with low-risk investments.
Additionally, current trade deal discussions with China could impact the price of gold. Depending on how things go, the trade deal could mean increased U.S. tariffs — which lowers the value of gold.
Still, most experts don’t think the trade issues with China will be completely resolved in 2019.
Use These Gold Price Predictions to Your Advantage
We hope that you’re able to make use of these gold price predictions when you’re rethinking your portfolio in 2019.
The consensus is that now is the time to buy, but expect to hold your investment in gold for longer than you might like. Keep a close eye on Fed hikes, the trade deal with China, and other political factors.
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