“The dollar index has had one dominant trend this year – the uptrend. The greenback and gold have an inverse relation….Going into 2019, the yellow metal is likely to shine more as cracks have started to surface in the U.S. economy. The U.S. equity markets are on track to record the worst performance in a decade…The housing market, a leading indicator to gauge the economic health of the country, is showing some serious concerns. Business investment has dried up in the third quarter and effects of tax cuts by Trump administration have almost vanished. Can the U.S. economy end up in recession in 2019? Under the current circumstances, it may not be far stretched to say that if the recession doesn’t see the daylight in 2019, it is likely to see it in 2020….All in all, it is highly likely that we will see an uptrend for gold and factors such as feeble economic growth, escalation in the geopolitics in Europe, the Middle East and stronger threats to Trump’s presidency could drive the price way above the $1600 mark in 2019. However, a controlled Fed policy and a stable economic growth may only push the price towards $1400.”
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