Gold Up After Brussels Attacks, Pulls Back with Stronger Dollar and Eurozone Fears
Global markets were sluggish this week anticipating the three-day Easter holiday weekend. Gold saw a rally this week following the terrorist attacks in Brussels at Zavantem Airport and Maelbeek metro station in the city’s EU institutions district. It eased back when the dollar began gaining strength over fears of Eurozone and Euro security. Gold generally sees price surges following major disasters. With a looming spectre of fear of more such attacks being likely, gold prices could increase again as it becomes more desired as a safe haven. Gold prices are still up nearly 18% year-to-date despite some market slowing this month.
Earlier this week, Marko Kolanovik, a chief commodities forecaster at JP Morgan Chase- anticipated gold going higher this year against a weakened dollar and stock market. He also predicted a likelihood of pressure being placed on the dollar later in the year if tariffs are imposed on import of Chinese goods. Here is a clip of Mr. Kolanovik on CNBC:
Lower physical demand from India and China this month has also contributed to the short-term negativity. The long term prospects are seen more favorably with some analysts forecasting the gold market as currently going through an anticipated price correction before it embarks on a more meaningful rise later this year. Some strategists are still predicting gold to go to over $1,370 by the end of the year.
If you listen to the airwaves in the Phoenix area, you most likely hear our commericals for RME on the local stations like KTAR News, Arizona Sports, KFYI, and iHeart Radio. We thought it would be fun to utilize the talents of Ben Campbell from iHeart Radio. Ben has a distinct talent- he impersonates a particular presedential candidate in a comedic fashion. We had a lot of fun cutting this latest ad- if you havent heard it running on KFYI/iHeart Radio yet- you can have a listen here:
Limited Seats Still Available to Thursday Seminar at KTAR- Sign up Now!
As always, I encourage you to speak with your broker at RME for more market updates. I hope to meet some of you at our upcoming seminar at KTAR Studios on March 31st. You can register to attend or call to register at 602-955-6500.