uploads///gold _

Gold Bulls Rejoice as Markets, Apple Plunge: Is $1,300 Next?

By

Jan. 3 2019, Updated 11:06 a.m. ET

Markets and Apple plunge

Gold is attracting increased bids amid growing concerns of a global slowdown. The latest data points that corroborate these fears came from Apple’s (AAPL) guidance cut. Yesterday, Apple warned that its first-quarter sales could be lower than previously expected. The company blamed the slowing Chinese economy for its reduced guidance, intensifying concerns about a global slowdown.

While Apple was down 8.8% at 10:00 AM EST, the S&P 500 Index (SPY), the Dow Jones Industrial Average (DIA), and the NASDAQ Composite Index (QQQ) were down 1.6%, 1.86%, and 2.11%, respectively. The SPDR Gold Shares ETF (GLD), on the other hand, was up 0.50% due to a weaker risk appetite in the market.

Article continues below advertisement

Slowdown concerns for China

Investors have already been digesting a weaker-than-expected manufacturing report from China. China’s Caixin/Markit manufacturing PMI (purchasing managers’ index) contracted for the first time in 19 months in December. The PMI value for December was 49.7 compared to 50.2 in November. The world is closely watching Chinese economic data for signs of a slowdown.

Gold gaining bids

Gold (GDX) gained 7.5% in the fourth quarter of 2018 on concerns of a global slowdown, the ongoing trade conflict between the United States and China (FXI), expected earnings deceleration, and tightening monetary policy. Currently, gold prices are trading close to $1,290 per ounce and are inching closer to the key psychological level of $1,300.

Read Is Gold Ready to Fly in the New Year? for more on our outlook for gold in 2019. As we highlighted in Bulls versus Bears on Wall Street: Time to Buy Gold in 2019? most Wall Street analysts are bullish on gold’s prospects for 2019.

Advertisement

More From Market Realist

  • A payment platform on a smartphone
    Tech & Comm Services
    Affirm versus Paysafe: Which is the Better Fintech Stock?
  • 3D Systems 3D printing machine
    Tech & Comm Services
    Is 3D Systems (DDD) a Good Stock to Buy? A Look at the Year Ahead
  • Black iPhone with lock symbol
    Tech & Comm Services
    Goldman Sachs Picks Cybersecurity Stocks After Colonial Attack
  • Amazon's CEO Jeff Bezos
    Tech & Comm Services
    Where Will AMZN Be in 2025 After Bezos Leaves?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.