Gold Price Likely to Hit $1,300

Hedge funds continue to up their short positions on gold, but analysts see this as bullish for the metal. Is it the perfect insurance policy for portfolios?

David Brenchley 13 August, 2018 | 10:10AM

Gold bar, gold price, short-selling, stock markets, safe haven

Gold is widely considered a safe haven asset; investors historically run to the precious metal during political or financial crises. However, despite 2018 suffering a myriad threats to both political regimes and financial markets around the world, gold has not proved popular.

Back in late January, the gold price almost reached a four-year high, eventually settling at $1,357, the highest level seen in six months. Now, it hovers just above a 13-month low of $1,218 – a 10% decline since March.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Gold and General D Acc1,566.39 GBP-2.89
Investec Glb Gold I Acc GBP227.49 GBP-3.55
iShares Physical Gold ETC35.69 USD0.88

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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