Where is gold going in 2019?

January 15, 2019

Gold closed out 2018 on a strong note amid volatile trading in stocks and global trade worries. Spot bullion inched towards a six-month high after topping $1,280 an ounce and December produced the best monthly gain for gold in almost two years.

So what’s lies ahead in 2019? Here’s a roundup of opinion:

Bloomberg News asked four executives from large producers including Newmont Mining Corp*. and Teck Resources Ltd. for their outlooks.  From dealing with debt to dividends, to corporate-level acquisitions and asset sales, no one plans to stay still.

Here’s what they see:

  • Cash-strapped juniors looking to large producers to help fund projects which means attractive deals for the big companies;
  • A halt in the Federal Reserve’s rate tightening policy which could mean a weaker dollar which benefits the sector, and
  • Nervous equity investors seeing gold as a safe haven.

Barron’s is a gold bull, noting in a Dec. 28, 2018 article that it is glittering again and continues to hold its value. The article identified that gold has kept up with inflation over the long term and that an ounce would have bought a good men’s suit in 1918, and still does today.

A Seeking Alpha review of the sector weighed in on interest rates and the U.S. dollar. The author believes that with the exception of inflation, indications are positive for gold going into 2019.

Harvest Portfolios Group Inc. has listed on the Harvest Global Gold Giants Index ETF (HGGG) on the TSX, beginning trading January 15, 2019.  HGGG seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Solactive Global Gold Giants Index TR.  HGGG primarily invests in 20 large equally weighted gold mining issuers, listed on stock exchanges in North America, Australia and Europe.

For more information about Harvest Portfolios Group Inc. products visit harvestportfolios.com

* Newmont Mining to buy Goldcorp in $10 Billion deal to create world’s largest gold producer

The views and/or opinions expressed in the blog are of a general nature and are for informational purposes only. Blog contents should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage personal investment strategies. Investors should consult their investment advisor before making any investment decision.  

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