Due to political turmoil, gold is set to to soar 50 per cent next year. A number of presidential elections in Europe, could unsettle the euro and shock markets, while benefiting gold prices which will get added lift from falling yuan.
According to Haywood Cheung Tak-hay, the honorary president of the Chinese Gold and Silver Exchange society said, gold traders should expect the price of gold to fluctuate between US $1100 and US $1377.
There has been many surprise results this year, ranging from the Brexit vote in June, when the British people voted to leave the EU in a referendum, to the surprise result in November, when Donald Trump outperformed Hillary Clinton, to become America’s next president. As if that was not enough, in Italy the Prime Minister Matteo Renzi announced his resignation, following Sunday’s resounding defeat on a constitutional reforms referendum.
All these have shocked the investment markets according to Haywood Cheung. He also said, if this was to continue next year as he expected gold would hit US $1500 per ounce.
The political uncertainties will continue to hunt investment markets. There are presidential elections in Germany, Holland and France. To top that Britain is expected to start negotiations on its exit from the EU, which will also shock the markets. On the other side of the Atlantic, Trump will definitely bring changes to international trends and the global economy. Add to that the devaluation of the Chinese yuan which has dropped 7 per cent this year and that will also be another good reason for the investors to bet on gold.