Gold Edges Down Amid Trade War Tensions
Gold posted a modest 1.6% decline in 2018 as the Fed continued its tightening cycle with four rate hikes. US-China trade tensions provided some support but weren't enough to offset dollar strength.
Key Events in 2018
- Fed raised rates four times in 2018
- US-China trade war escalated through the year
- Emerging market currencies tumbled (Turkey, Argentina)
- Q4 stock market correction briefly lifted gold
Key Factors
Frequently Asked Questions
How did the trade war affect gold in 2018?
The US-China trade war created some safe-haven demand for gold, but this was largely offset by a strong dollar driven by four Fed rate hikes. Gold was essentially flat for the year, declining just 1.6%.
Was 2018 a bad year for gold?
2018 was a slightly negative year for gold with a 1.6% decline, but it performed better than many assets during the Q4 stock market correction, demonstrating its diversification value.
Important disclaimer
This website is for informational purposes only and is not financial advice. Always speak with a licensed financial advisor before making investment decisions.