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Cryptocurrency Volatility A Sideshow for Gold

Published 25/01/2018, 15:05

Investing.com - The most bullish gold investors would say that prices have benefitted from the turbulence in cryptocurrencies this year, but analysts say it will take a lot more than that for the precious metal to break out in 2018
Futures prices did flirt with a 5-year high of around $1,350 an ounce recently, only to quickly fall back down.
The consensus view is that after modest gains during a fairly volatile 2017, gold is headed for a flat year, barring any major geopolitical or economic shocks.
For one, the Federal Reserve's gradual approach to raising interest rates will keep the dollar and inflation under control.
Stable global economic growth and the unlikelihood of a recession will also hold back gold prices.
The two wild cards are U.S-North Korea relations and the long running bull market in stocks.
A market correction or threat of war will send investors rushing to gold as a safe haven.

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