"Following a very strong start, gold has had a disappointing year for the most part, as it printed red for 2018," note TD Securities analysts.
Key quotes
"Although equity market weakness and a recent Fed shift toward a more dovish and pragmatic stance has provided a short covering boost, the same factors that have weighed on the yellow metal for much of the year will also serve as an impediment to prices breaking out above $1,300 in the early part of 2019. We expect choppy range-bound trading in the near-term, as the greenback remains relatively firm, Fed monetary policy continues to be ambiguous and China/EM economic and currency risks continue to manifest — a US-China trade deal will take time to negotiate and Chinese stimulus is unlikely to take hold until later in 2019.
"From our vantage point, much of the poor performance across the precious metals space has been sentiment and capital flow driven. This is a trend which is unlikely to be materially reversed in the near-term, now that US equity markets have caught a bid and data such as the December payrolls continue to beat expectations. But, as markets become convinced that the tightening cycle is done, a weaker USD and a materially slower US growth profile will once again raise equity correction risks in the latter half of 2019, prompting the yellow and white metals to jump higher again."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds higher ground above 1.1250
EUR/USD recaptures 1.1250 in the European session on Tuesday, extending the previous gains. Renewed US Dollar weakness on fiscal and economic concerns amid US tariffs uncertainty underpins the pair. Speeches from ECB and Fed policymakers eyed amid a data-light calendar.
GBP/USD surrenders some gains, returns to 1.3340
GBP/USD continues to shed ground following earlier tops above the 1.3400 mark on Monday, approaching the 1.3340 zone following a gradual recovery in the Greenback as investors continue to assess Moody’s decision to downgrade the US credit rating.
Gold price sticks to intraday losses amid positive risk tone; holds above $3,200
Gold price maintains its offered tone through the Asian session on Tuesday though it manages to hold above the $3,200 round figure. Against the backdrop of rising trade optimism, hopes for a Russia-Ukraine ceasefire remain supportive of a positive risk tone.
Solana set for a consensus switch with the introduction of Alpenglow
Solana (SOL) showed signs of recovery in the American trading session on Monday following the introduction of a new consensus protocol, Alpenglow, which would replace the network's current Proof-of-History and TowerBFT mechanisms.
China April slowdown shows the impact of economic uncertainty
Trade war uncertainty is denting Chinese confidence, resulting in slower economic activity in April. Retail sales and fixed-asset investment both underperformed forecasts amid heightened caution. Yet the impact on manufacturing was less than feared.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.