The gold rally will last until the end of December - opinion

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According to some analysts, the price rally of gold may continue until the end of this year. This opinion is shared by the expert on the market of precious metals, Boris Mikanikrezai.

In December 2018, analysts recorded an increase in gold futures from $ 1,235 to $ 1,250 per ounce. According to B. Mikanikrezai, in the last month of the outgoing year, the price rally of the precious metal demonstrates stable dynamics.

The key driver of growth in the value of the yellow metal in December was the announcement of the US Federal Reserve System (FRS). Recall that the regulator is in favor of a moderate increase in interest rates. According to Jerome Powell, the head of the Fed, his department's monetary policy will remain neutral, and decisions will be made based on current statistics.

According to the publication The Wall Street Journal, in December this year, the Fed may raise rates again, but then take a long pause in this matter. Experts do not exclude that this pause will last two years.

According to expert estimates, the Fed's policy change will provide significant support to the gold market, as the US dollar and current interest rates will be under pressure. As a result, the demand for the yellow metal will increase, experts predict.

According to B. Mikanikrezai, in the near future, a number of investors will begin to replenish their portfolio with safe assets, including gold. Due to this, the demand for the yellow metal will remain at a consistently high level, the analyst sums up.

The material has been provided by InstaForex Company - www.instaforex.com