Gold Price Hits a 12 Month High!
January 2019 - Gold hits the highest price within a 12 month period! Will the bull run continue. We hope so!
To the back drop of gloomy equities gold price rallied in early January hitting a 12-month high of £1031 per ounce. We saw an influx of both sellers and bullish buyers cashing in on a 13% price rise from October lows.
Gold backed ETF's surged in December as investors shifted out of equities and into safe havens, notably gold. Funds rose by 2.4m ounces or 76 tonnes equivalent to inflows of roughly $2.5bn according to the World Gold Council. Palladium price exceeded £1000 per ounce for the first time, spurred on by its use in catalytic converters and car sales. The meteoric 140% rise since the beginning of 2016 saw palladium outperform spot gold price.
This said, I would suggest caution with any long-term plans on palladium as electric cars slowly replace combustible engines catalytic convertors will become a thing of the past! Not only that global economic slowdowns as predicted for 2019 will provide an inevitable slump in car sales as demand drops off. For now, at least, the restricted supply of palladium is likely to keep the price high. Oh, if only we had a crystal ball, we may have bought in more palladium stock but thats the way it goes sometimes!
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