Gold ignores cryptocurrency craze having its best year since 2010
The price of gold is up 13 percent since January and is on target for its best-performing year since 2010. It’s driven by a weaker US dollar and safe-haven buying prompted by global political uncertainties.
Spot gold was up 0.2 percent, trading at $1,297.39 an ounce as of 11:20 GMT on Friday.
Analysts say the precious metal is also on track for its best month since August and has benefited from technically-driven momentum as well as the dollar downtrend.
“We expect gold prices to trade higher on Friday, continuing its positive momentum from the previous trading session while the weak dollar index and thin trade also contributed to the rally,” Angel Commodities said.
According to INTL FCStone analyst Edward Meir, “The weaker dollar could provide more upside fodder for the precious metal going into the New Year, as could a modest wobble in US equity markets. But, the geopolitical backdrop looks fairly tame and would not lend much support.”
Geopolitical uncertainty and fears over North Korea’s nuclear ambitions have also spurred investor interest in gold as a safe-haven asset. Some experts, however, say that despite its strong year the yellow metal was drastically underperforming cryptocurrencies. Traders were dumping the solid investment in exchange for virtual currencies.
In its outlook for 2018, ETF Securities said gold’s role as a risk management tool and a store of value will be greater than ever.
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“Gold’s potential to serve as a dynamic, multi-faceted, and cost-effective portfolio hedge against many known and unknown risks may be a powerful tool for long-term investors,” said Maxwell Gold, the company’s Director of Investment Strategy.
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