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Home / Business / Recession fright has investors wanting to go for gold as a hedge, "prices are skyrocketing

Recession fright has investors wanting to go for gold as a hedge, "prices are skyrocketing



Keep those inflammatory tweets and presidents about low interest rates from the Federal Reserve coming, say just about every gold investor out there on Wall Street.

<p class = "Canvas Atom Canvas Text Mb (1.0 cm) Mb (0) – sm Mt (0.8 cm) – sm" type = "text" content = "Prices for the yellow metal have skyrocketed around 20% this year to more than $ 1

500 an ounce of & nbsp; fears escalating trade tensions with China & nbsp; will plunge the United States into a recession, with the large price eruption coming in June, accelerating as the Fed shifted its stance in monetary policy to more bleak. "data-reactid =" 16 "> Yellow metal prices have risen 20% this year to more than $ 1,500 an ounce for fears that escalating trade tensions with China will plunge the United States into a recession. The big price outbreak came in June, and accelerated as the Fed shifted its stance in monetary policy to more dovish.

Gold is often seen as going to a safe haven in such a precarious macroeconomic background and when the Fed lowers rates. Investors have not only rotated into physical gold, but also ETFs and gold miners.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "For example, SPDR Gold Shares has ETF ( GLD ) gained a cool 16% a year Gold mining titan Barrick Gold Corp. ( Gold ) has notched an impressive 47% annual rise. "Data-reactid =" 18 "> For example, SPDR Gold Shares ETF (GLD) has gained a cool 16% a year. Gold mining titanium Barrick Gold Corp. (GOLD) has notched an impressive 47% annual rise.

Most people on Wall Street expect the rally to continue … and maybe blow through the key $ 1,600 an ounce.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Investors are very concerned about the economy and the future to the financial system, and they are going gold as a hedge, "said VanEck gold portfolio manager Joe Foster at Yahoo Finance & nbsp; The First Trade . Foster says both institutional and retail investors have both plowed gold." data-reactid = "20"> "Investors are very concerned about the finances and future of the financial system, and they're going to be gold as a hedge," said VanEck gold portfolio manager Joe Foster at Yahoo Finance's # 1 First Trade. Foster says both institutional and retail investors have both plowed gold.

"It's very possible [we blow by $1,600 an ounce]. Gold is about to establish a new trend – I think that's the beginning of a new bull market in gold," Foster adds.

Deutsche Bank metal analyst Michael Hsueh believes gold purchases by major central banks during this increase in macro risk are also likely to support higher gold prices.

"Although speculative and retail demand are likely to dominate shorter term flows, the stability of central bank demand should help to drive gold prices higher over longer time frames," Hsueh wrote in a recent note.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Brian Sozzi is a great editor and co-host for The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi "data-reactid =" 33 "> Brian Sozzi is the editor and host of The First Trade at Yahoo Finance. Follow him on Twitter @BrianSozzi

<p class = "canvas-atom canvas text Mb (1.0em) Mb (0) – sm Mt (0.8em) – – sm "type =" text "content =" Read the latest financial and business news from Yahoo Finance "data-reactid =" 34 "> Read the latest financial and business news from Yahoo Finance [19659019] < p class = "canvas atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Follow Yahoo Finance at [19659037] Twitter Facebook Instagram Flipboard SmartNews LinkedIn [19659011] YouTube and reddit . "data-reactid =" 40 "> [19659007] Follow Yahoo Finance on Twitter Facebook Instagram Flipboard SmartNews LinkedIn YouTube and reddit .

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