WGC Spots Exceedingly Positive Signs for Gold in 2019

SEATTLE (Scrap Monster): Commenting on the gold market outlook for 2019, the World Gold Council (WGC) stated that it foresees encouraging signs for gold, following a rollercoaster year in 2018.

Juan Carlos Artigas, Director of Investment Research at the WGC noted that gold demand is likely to improve in 2019, mainly on account of structural economic reforms in world countries, uncertainty in global financial markets and rising geopolitical unrest. He highlighted the chances of political and economic instability in Europe and possibilities of a global recession. Under these circumstances, investors are likely to turn to gold as a long-term safe tool. It must be noted that gold had lost its sheen as investment choice in 2018.

Emerging markets, led by China and India account for almost 70% of the gold demand. The rapid economic reforms in both these countries are likely to boost income levels, which in turn may result in significant increase in consumer gold demand. India’s projected economic growth of 7.5% in 2019 is likely to benefit gold the most. The U.S. and parts of Europe are also likely to witness positive consumer demand for gold in 2019.

According to WGC, market risks and uncertainty will continue to make gold attractive in the short term. The yellow metal’s role as an asset of last resort, development of the middle class in emerging markets and its rising demand from technological sector are expected to lend support to gold’s longer term demand growth.