Heading into the last days of October, many investors wonder where gold prices are heading. It was a busy weekend, with the reported killing of ISIS terrorist leader Abu Bakr al-Baghdadi by United States military forces. The news, heralded as a positive step toward greater domestic and international security, was delivered by United States President Donald Trump with his cryptic message on the fate of the oil reserves that were once in ISIS hands. He leaves quite unclear who it is that will take custody of those precious and valuable resources, making many geopolitical analysts unnerved to say the least.
Looking ahead this week, we have the proposed Federal Reserve rate cute and several economic data sets that will be released, including home sales and job reports information. Gold prices will surely be affected by all of the aforementioned. Gold opens the week a notch above $1,500 per ounce — a figure nearly $275 higher than at this time a year ago. And there are many things happening now that will shake things up even further looking ahead.
The Trump impeachment inquiry carries on, and we inch closer to the Iowa Caucuses to help determine who will be Trump’s democratic rival — if Trump is even still president in 2020, that is. Furthermore, international trade talks continue sizzling and concerns about a possible upcoming recession worries many investors. With so much uncertainty in the air, it seems conditions are ripe for speculators to look toward gold and other precious metals as safe-haven investments.