Just when it looked like gold’s “fear factor” might be fading, worries over the strength of the global economy have come to the rescue. In today’s report, we’ll examine the developments which should help keep gold’s fear component strong and allow its intermediate-term recovery to continue.
Concerns over global growth pushed equity prices lower while helping to boost gold on Tuesday. According to the latest economic data, China’s economy grew by “only” 6.6% in 2018, which was the slowest pace since 1990. The slowdown evident in China’s growth rate gave gold investors a reason to continue holding bullion based on safety-related factors. It should be noted, however, that China’s fourth-quarter GDP matched economists’ expectations and didn’t surprise on the downside.
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