WGC shares mid-year 2019 gold outlook
Weaker economic growth may soften gold consumer demand near term, but structural economic reforms in India and China will likely support long-term demand
The first half of 2019 proved quite eventful for financial markets. Stocks retraced their Q4 2018 losses by the end of April only to pullback again in May. A few weeks later, stocks reached new highs yet again. At the same time, central banks across the globe have signalled a more accommodative stance, bringing global bond yields to multi-year – and in some countries, all-time – lows. As investors looked to balance higher stock prices with an increasingly uncertain environment, gold prices surged, making gold one of the best performing assets by the end of June.
World Gold Council shared that over the next six to twelve months:
• Financial market uncertainty and accommodative monetary policy will likely support gold investment demand
• Price momentum and positioning may fuel rallies and create pullbacks, as investors continuously reassess their expectations based on new information
• Weaker economic growth may soften gold consumer demand near term, but structural economic reforms in India and China will likely support long-term demand.