Gold was often treated by investors as so-called safe haven and an international carrier of values in uncertain times. Economic uncertainty and a possible slowdown in the growth rate caused by the trade war have been accompanied by anxiety associated with the rise in tension in the Persian Gulf.
Recent attacks on tankers in the Gulf of Oman and accusations of Iran for these actions by the United States may point to the escalation of the conflict, for which there is no good solution at the moment. Investors seem to be more and more afraid of possible confrontation and prefer to store their funds in safe and recognized all over the world gold. If the worst-case scenario, or armed conflict, was to occur, gold prices could rise sharply.
Recently, one of the best-known in the circles of billionaire Paul Tudor Jones, the manager and creator of Tudor Investment Corp, found out in an interview with Bloomberg that his favorite investment for the next 12-24 months is the purchase of gold. In his comment, he added that if the price exceeds USD 1,400 per ounce, it can quickly reach the level of USD 1,700.
In his opinion, the economy, which was built on global trade, is on the verge of collapse, because tensions in world trade are still growing. Tudor Jones added that the recent threat posed by President Donald Trump a further increase in tariffs on imported Chinese goods worth USD 300 billion could lead the US economy into recession.
Chart: Gold, W1. Conotoxia trading platform
Looking at the chart, we see that the price of gold is approaching a key resistance of USD 1,400. If it is broken the price could move to higher levels, including the said 1,700 USD.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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