“Right now, there is a lot of insecurity about the stock markets, global economy and trade,” said Miguel Perez-Santalla, vice president of Heraeus Metal Management in New York.
“These concerns are holding gold up and one wrong move can pop gold up above the $1,300 level.”
Last week, inflation data met expectations, which kept the U.S. dollar in check and allowed gold to advance slightly. The consumer price index for December came in line with expectations–down 0.1 percent from November and up 1.9 percent, year-on-year–marking the first decline in nine months.
Despite all the headwinds gold has had to face in 2018, some analysts feel that the precious metal has weathered the storm and offers a prime buying opportunity for investors in 2019.
“The macro environment still looks very positive for gold, given we expect the dollar to weaken and the Fed unlikely to start hiking rates until the second half of the year,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.
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