In 2017, investors added gold to their portfolios as incomes increased, uncertainty loomed, and gold’s positive price momentum continued. As 2018 begins we explore four key market trends and their implications for gold:
- synchronised economic growth
- shrinking central bank balance sheets and rising rates
- frothy asset prices
- market transparency, efficiency, and access.
We believe that these trends will support demand and maintain gold’s relevance as a strategic asset.
Chart 1: Gold outperformed major asset classes in 2017*
*Calculations based on total return indices except for spot DXY, gold and silver. Source: Bloomberg, ICE Benchmark Administration, World Gold Council
