The majority of investors expect the price of gold to continue to climb throughout the remainder of 2019, according to a survey carried out by Invesco.
The investment management firm said 72% of investors expect prices to rise, with the value forecast to reach $1,485 per ounce by the end of the year. In contrast, only 25% thought the price would be the same or lower.
Investors cited a combination of trade wars between the US and china (71%), economic downturn in the US and Europe (60%), downturn in the stock markets (46%) and central banks holding or cutting interest rates (37%) as the key drivers behind growing demand for gold.
The findings revealed that two thirds of respondents thought a defensive capital preservation strategy would be a primary reason behind an increased allocation to gold from institutional investors in 2019, while 11% said it would be greater portfolio diversification. Only 15% said they did not believe institutional investors will allocate more to gold this year.
Chris Mellor, head of EMEA ETF equity and commodity product management, Invesco, said: “We requested the survey to help us better understand what investors think about gold in the current environment and how they prefer to gain exposure. This week marks the 10-year anniversary of the launch of the Invesco Physical Gold ETC, which is now the largest of our exchange-traded products in Europe.”
