Gold prices have recently stayed above the mid-August lows and a move close to $1,300 per ounce could trigger more buying. Rising interest rates have also stymied gold this year, but real rates are stabilizing, which could benefit bullion.
Some market observers believe commodities can bounce back in 2019 with gold and oil looking particularly attractive.
“While I do think we are due for a bounce from oversold conditions, the trend is certainly to the downside right now,” according to InvestorPlace. “Therefore, I am recommending a play on a defensive commodity that investors often turn to as a safe-haven during volatile times: Gold.”
For more information on the gold markets, visit our gold category.
Tom Lydon’s clients own shares of GLD.