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#1 26-12-2019 09:08:27

johnedward
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From: Paris - France
Registered: 21-12-2009
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Why gold will likely continue to shine on the markets in 2020

Why gold will likely continue to shine on the markets in 2020


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Gold could be an attractive investment in 2020, after an already highly profitable 2019. This is indeed what Byran Wiene, Blackstone's investment specialist, says:

"Consider gold next year. It has the opportunity to be a great investment."

Wiene didn't provide further details on his estimates for gold or the precise direction of gold trading in 2020.

However, his comments came at a time when gold was on the verge of one of its strongest daily gains since late November and its highest level since the beginning of last month, surpassing a psychologically significant level of over $1,500 per ounce briefly on Tuesday.

Gold has gained 17.2% so far this year, according to FactSet data, based on the most active futures contract. This is a relatively healthy gain for the metal, given that stocks, which tend to move in the opposite direction to gold, are trading near all-time highs.

Indeed, the Dow Jones Industrial Average has gained 22.4% so far in 2019, the S&P 500 Index has climbed over 28% over the same period and the Nasdaq Composite Index has risen nearly 36%, putting these indices on track for their largest annual gains in years.

What keeps gold afloat while stocks are on the rise? In part, there is concern that the stock market could fall back after a mostly bullish 2019.

But commodity experts also say that an easing in the USA/Chinese trade front could help create bullish sentiment around the appetite for gold.

Meanwhile, seasonal trends could also help gold strengthen next month. Since 1980, January has been one of the best months for gold, with an average gain of 1.53% during the month, according to Dow Jones market data.

The best month for gold, however, is August, when the precious metal gained an average of 1.57%.

January, however, is generally a strong buying period for gold, as Asian investors are generally interested in the commodity as the Lunar New Year approaches, when gold is given as a gift.

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