Gold price forecast to soar 50 per cent up next year amid euro-zone uncertainties
A series of presidential elections in Europe may endanger the euro and stock markets while benefiting gold prices, which will get added lift from falling yuan
Gold traders expect the price of gold to climb between 25 per cent to 50 per cent next year as a coming swarm of political uncertainties will lead investors to bet on the precious metal.
Haywood Cheung Tak-hay, the honorary permanent president of the Chinese Gold and Silver Exchange Society, said that events so far this year had caused the per ounce price of gold to fluctuate between US$1,100 and US$1,377.
“The many surprise results this year, ranging from the Brexit vote in June, when Britain voted to leave the European Union in a referendum, to the surprise result in November when Donald Trump was elected president of the United States, have all shocked the investment markets. This has led investors to buy in gold,” Cheung told the Post.
He said this trend would continue into next year, and he expected gold to hit US$1,500 per ounce.
“The political uncertainties are likely to continue to haunt investment markets next year. There are presidential elections in France, Germany and the Netherlands. These will all introduce uncertainties in the market,” Cheung said.
The disintegration of the European Union would endanger the future of the euro
In addition, Britain is expected to start negotiations on its exit from the EU from April, which Cheung said may be a source of further shocks on investment markets.