Gold Outlook 2019: Factors That Could Support Gold in 2019 – Real rates turn negative: Gold tends to perform well when the inflation rate is higher than the nominal interest rate. Inflation may rise well above interest rates if the US-China trade war escalates, restoring gold’s appeal as a store of value.
US economy underperforms: The haven flows into the US seen in 2018 will likely reverse, pushing the yellow metal higher, if the world’s largest economy underperforms the global economy.
Market volatility: Hedging demand for gold may rise if the equities, commodities and EM currencies remain volatile.
