Gold price rises to two week high

Gold is up and the US dollar is down as the commodity edges up to $1319.70 an ounce. Investors bullish on gold have pushed to the price of gold to its highest levels in months.

Could gold reach $1500 an ounce?

Gold is seen as a safe investment amid the volatility of the global economy. IG business reporter and presenter, Victoria Scholar, asked Incrementum Research and Investment Funds’, Ronald-Peter Stoferle, what he thought about the gold’s increase in the commodities market. In the interview, Stoferie talked about gold, the global economy, and the US Federal Reserve.

Stoferie believes that once the commodity goes past the resistance levels of $1360 and $1380, gold could reach a new high.

‘Gold could hit $1,500 an ounce by year-end’, said Stoferie.

How will the global economy affect gold prices?

Stoferie believes that the price of gold is increasing as the global economy is slowing down and there are ‘really, really weak economic numbers all over the globe.’ While he contends that a US recession would lead to an increase in the price of gold, he also believes that China’s stimulus will be a ‘positive environment for commodities.’

Can the Fed affect gold prices?

In addition to the global economy, The US Federal Reserve could have an impact on gold prices, too. Stoferie thinks that the Fed has ‘some leeway’ for lowering rates. Stoferie predicts that the Fed will lower its rates and an end of qualitative tightening(QT) and more qualitative easing (QE) because of volatility on Wall Street.

He believes that there is ‘no question that the Fed will implement QE again’, said Stoferie. Stoferie said that the Fed may implement QE because, ‘the US is much weaker than the headline numbers suggest,’ said Stoferie.

He also said that the possible turn to QE could boost the price of gold because the commodity’s prices could rise as the Fed lowers or stabilizes interest rates, which could cause the US dollar to fall.