Why the Price of Gold Is Heading for a Double-Digit Surge in 2018

Peter KrauthPeter Krauth

The stock market has been especially volatile this year, and that’s proving to be a boon for the price of gold…

The CBOE Market Volatility Index (VIX) more than tripled its January average on Feb. 5, when the Dow Jones sank more than 1,000 points. The VIX is still nearly double its Jan. 1 level.

Since the start of 2018, there have been some 100 trading days with a daily movement of at least 1%.

That’s a great sign for gold prices in 2018.

Volatility indicates uncertainty, and precious metals tend to thrive in that kind of environment.

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Meanwhile, the U.S. Dollar Index (DXY) continues to hover in a holding pattern after retreating by a full 100 basis points in the past week.

While the dollar is moving sideways in its near-term action, it’s likely headed lower in the medium term, and that should help support higher gold prices.

These are excellent trends supporting my 2018 gold price prediction. And I’ll show you exactly how they impact my latest gold price target right after we take a look at last week’s highlights for gold prices…

The Price of Gold Rode Volatility Higher

After climbing stealthily on Monday (April 9) and Tuesday (April 10), gold prices soared on Wednesday (April 11) to a seven-week high as U.S. President Donald Trump tweeted his plan to attack Syria.

The uncertainty surrounding a potential military conflict in Syria spurred gold buying, as it’s traditionally a safe-haven holding.

Price of gold

The bullish sentiment behind gold gave way to optimism in the stock market on Thursday (April 12).

The dollar enjoyed a bounce as stocks gained again, and both weighed on gold as it gave back two days of gains. But on Friday, markets opened higher, then reversed and ultimately closed down. Gold enjoyed a renewed bounce, ending the week at $1,345 as the DXY softened to around 89.75.

While gold prices saw a modest gain last week, all signs are pointing to an even more lucrative future for the yellow metal.

Here’s exactly what I see in store for gold prices this year, including my updated price targets…

The Cards Are Falling Just Right for Gold Prices in 2018

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Peter KrauthPeter Krauth

About the Author

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Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it’s in gold, silver, oil, coal, or even potash.

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