Even though the global gold price fell for six consecutive months from the second quarter of last year which is a rare sight, the gold market rise more than 4% in December last year, quickly narrowing the decline experienced in the first half as the Central Bank tightens its monetary policy and the US dollar index strengthened. International professional analysts believe that the global gold price in 2019is expected to gain strength and rise with the expected Central Bank’s interest rate hikes and the volatility of global stock markets.
John Reade, Chief Market Strategist at World Gold Council (WGC), said that global financial markets will continue to fluctuate due to economic and geopolitical uncertainties in 2019. Therefore, investors are advised to avoid using hedging methods they normally deploy in markets such as the US dollar and US stocks. Instead, they can choose to divert to the gold market as an ideal hedging asset.
The global gold market was affected by the “see-saw effect” of US gold price last year, and the major players in the market turned more bearish which results in a lot of short positions in the short-term futures market, resulting in the overall decline in the price of the global gold market last year. However, according to recent data, the market's expectations for bullish gold futures continue to rise. Since the end of December last year, the net position of gold held by investors has continued to increase, indicating increased interest in the market. In addition, many funds are re-introduced into gold ETF products supported by physical gold(transactional open index funds). Therefore, Joel Harlin, Chief Investment Officer of Phoenix Wealth Management believes that all these factors and signs indicate that investors' interest in gold has rebounded.
Mr. Joel Harlinalso said: "Whether it is the overall market or the flow of funds, it will definitely play a specific role in promoting the price of gold. Therefore, we believe that gold will continue to be sought after in 2019, with considerable room for growth. Investment in precious metals such as the gold market will be one of the stable markets that investors can consider."
Founded in Canberra, Australia in 2008, Phoenix Wealth Management officially entered the Asia-Pacific market since December last year and quickly established financial service centers in Shanghai and South Korea to introduce a more robust gold investment strategy to the Asia-Pacific region. At the same time, PhoenixWealth Management has a very rich experience in precious metal investment. The results that have been achieved along with the profitability has been widely recognized by the market and clients. With Phoenix Wealth Management’s entry into the Asia Pacific region, we expect that it will inject a new force for the financial investment industry.
