By Andrei Skvarsky.
The head of London-based boutique Sun Global Investments argues that gold has recently become more popular among investors as a shield against today’s international political and economic storms and that this is what has pushed its price to a six-month high.
Investing in gold, which has shot up to nearly $1,282 per ounce, is “a long-term investment strategy mindful of the turbulent first quarter of 2019”, Sun Global CEO and founder Mihir Kapadia said in a statement.
The looming threat of a no-deal Brexit, the US-China trade war, and a partial US government shutdown are some of the developments that force investors to turn to gold, according to Kapadia.
Tensions between US President Donald Trump and the US Federal Reserve are yet another factor. “A rogue action scenario by the Trump administration to undermine the independence of the federal bank cannot be ruled out as implausible,” Kapadia said.
Sun Global believes gold may leap to $1,300 per ounce by the start of January and to $1,400 by February.
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