Home / World / Recession fears have investors ‘going to gold as a hedge,’ prices are skyrocketing

Recession fears have investors ‘going to gold as a hedge,’ prices are skyrocketing



Comply with presidential trade tweets and promises of low interest rates from the Federal Reserve, says almost all gold investors on Wall Street.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Yellow metal prices have skyrocketed around 20% this year at more than $ 1,500 an ounce in & nbsp;fears that trade tensions with China will increase& nbsp; It will plunge the United States into a recession. The main price break occurred in June and accelerated as the Fed shifted its stance in monetary policy to a more moderate attitude. "Oz for fear of escalating trade tensions with China will plunge the United States into a recession The significant price break occurred in June and accelerated as the Fed changed its stance in monetary policy to greater moderation.

Gold is often seen as safe haven trade in such an uncertain macroeconomic context and when the Federal Reserve is lowering rates. Investors have not only become physical gold, but also ETF and gold backed miners.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For example, the SPF Gold Shares ETF (GLD) has won a great 16% in the year. Gold mining titan Barrick Gold Corp. (GOLD) has reached an impressive 47% rise in the year to date. "data-reactid =" 18 "> For example, the SPDR Gold Shares ETF (GLD) has gained a fantastic 16% in the year. Gold mining titan Barrick Gold Corp. (ORO) has achieved an impressive 47% rise So far this year.

The majority on Wall Street expects the concentration to continue … and perhaps exceed the key level of $ 1,600 per ounce.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Investors are very concerned about the economy and the future of the financial system and they will go to gold as a hedge, ”said VanEck gold portfolio manager Joe Foster at Yahoo Finance;The first trade. Foster says that both institutional investors and retailers have invested in gold. "Data-reactid =" 20 ">" Investors are very concerned about the economy and the future of the financial system and are going to use gold as a hedge, "VanEck gold Joe Foster, portfolio manager, said in Yahoo's First Trade Finance Foster says that both institutional investors and retailers have invested in gold.

"It is very possible [we blow by $1,600 an ounce]. Gold is setting a new trend. I think it's the beginning of a new bull market in gold, "adds Foster.

Deutsche Bank metal badyst Michael Hsueh believes that the purchase of gold by major central banks during this episode of high macro risk is also likely to support higher gold prices.

"While speculative demand and retail investors are likely to dominate short-term flows, the stability of central bank demand should help skew gold prices over longer terms," ​​Hsueh wrote in a recent note.

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Brian Sozzi is editor in general and co-host of The first trade in Yahoo Finance. Follow him on Twitter @BrianSozzi"data-reactid =" 33 ">Brian Sozzi is editor in general and co-host of The first trade in Yahoo Finance. Follow him on Twitter @BrianSozzi

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Read the latest financial and commercial news from Yahoo Finance"data-reactid =" 34 ">Read the latest financial and commercial news from Yahoo Finance

<p clbad = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, Smartnews, LinkedIn, YoutubeY reddit."data-reactid =" 40 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, Smartnews, LinkedIn, YoutubeY reddit.

The Yahoo Morning live morning program.


Source link