Gold should have been a value store, and it has long been doing well in terms of inflation. As Andrew Barry has pointed out earlier, in 1918, an ounce of gold could buy a good set of men's wear, and it is still true today.
Gold can also play a buffer role in tough times. The S & P 500 has fallen sharply in the past, but gold has ushered in "spring", which is why some investors buy gold to hedge against the chaos of the market.
In the monetary market, gold's "insurgency" to deal with volatility is also obvious. In 2018, gold outperformed other G10 currencies, except for yen, US dollar and Swiss franc, said kit Jukes, foreign exchange strategist at Societe Generale.
Given the continued uncertainty in the foreign exchange market, gold prices are likely to continue to rise. The outlook for the dollar looks less optimistic, given the possible slowdown in the US economy and the huge fiscal deficit of the U.S. government. Meanwhile, the euro looks cheap relative to the dollar, but the main "requirement" for the euro's strength is that news from Europe will not get worse. But obviously, it's not a good reason.
The reason for optimism about gold is that the dollar's fundamentals are deteriorating and there is no reason to choose any currency for others, says Mr. Jukes.
Erik Norland, a senior economist at the Chicago Mercantile Exchange, also said 2019 would be a good year for gold if macroeconomic factors were in place.
If the job market continues to tighten, unemployment is further down and inflation is under upward pressure, it could be extremely good for gold, Norland told kitco news.