How Will Gold Perform In The Upcoming 3 To 4 years?

How will gold perform in the upcoming 3 to 4 years

It can be expected that the gold price might increase in the coming future if the other factors that lead to currency depreciation get normalized. If we see the S&P/ASX 200 RESOURCES for the resource sector, we see that the price of gold on 27 November 2018 has increased by 0.51%. There are many factors which impact the price of the gold. The key drivers on which the performance of the gold depends on:

  • How strong the currency of a particular country is related to the US dollars.
  • The economic growth and the market uncertainty of that particular country that includes inflation, interest rates, income growth, the confidence of the consumer and small risks are another set of 3 reasons for the price movement of gold.
  • The other factor which impact the price movement is due to the derivatives positioning. To hedge the risk of uncertainty in the gold price, people enter into a derivative contract to mitigate risks.
  • And one of the most important reasons i.e. the demand and supply of the gold which considers the production of gold through mining and its demand across the world.

Gold is a unique asset not only in the form of jewelry but also an important source of investment. If an investor adds gold to its investment portfolio helps in enhancing the portfolio by giving adjusted returns.

Based on OECD economic outlook prediction, there is year on year % increase in the real GDP growth of the company by 3.1% in 2018. It is further expected that there will be a fall in the real GDP growth and it will reach 2.9 % in 2019 and will go further down in 2019. If this will be the scenario of the economic growth in Australia, then there is a chance that it might have a negative impact on the prices of gold.

The other factor that might impact the gold price might experience if the Australian economy gets impacted by the crude oil prices. The crude oil prices are hugely impacting Australia as it leads to currency depreciation regarding USD. Currency depreciation leads to a huge impact on gold prices.

Also, Australia is a hub for gold where there are some gold explorer company who exports gold across the globe. Australia being the hub of gold boosts the Australian economy. The demand for gold will try to maintain a positive trend. Hence Australia will be able to meet the requirements of its client shortly as well.

[optin-monster-shortcode id=”vfz17z9xonopjz0pntw8″]


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

Checkout our Free Dividend Stocks Report

Specially made for income-hungry investors, Invest in growing Franked Dividends an opportunity that should not be missed.

6 Cannabis Stocks under Investor’s Limelight…

Cannabis companies that sell both medicinal weed and recreational pot. Marijuana stocks to look at. Marijuana mergers and acquisitions. Dispensary data analytics. Upcoming marijuana IPO’s Those phrases have become increasingly common as marijuana legalization spreads.

Global spending on legal cannabis is expected to grow 230% to $32 billion in 2020 as compared to $9.5 in 2017, according to Arcview Market Research and BDS Analytics. As of June 29, 2018 the United States Marijuana Index, despite a lot of uncertainty around regulations, has over the past 1 year gained 71.49%, as compared to about 12% gain seen by the S&P 500.

Click here for your FREE Report