According to a recent report by Fuji Credit Asset Management, gold prices have risen to their levels in a month following a flight to safety prompted by acute volatility in global stock markets in the first few trading sessions of the new year.

Gold prices had largely been tipped to fall further in response to the US Federal Reserve’s decision to raise interest rates for the first time in nearly a decade last month but they appear to have found strong support at around the $1050 level from where they have rallied to close out Friday’s session at over $1100.

“We’ve been encouraged by the resilience of gold prices in the face of quite pervasive bearishness,” said Fuji Credit Asset Management’s Head of Corporate Trading, Tony Williams. “It was widely tipped to go lower but there’s been something of a buy-the-rumor-sell-the-news reaction since the rate hike with many investors speculating that the hike had already been factored into the price,” he added.

Fuji Credit Asset Management is bullish on gold for 2016. Consensus at the firm is that the Federal Reserve will be unable to raise rates further and, in all likelihood, may be forced to cut to zero again if US economic data continues to worsen.

“There’s been a steady flow of very weak data from the manufacturing sector, the consumer and the housing sector all three of which are crucial to a sustainable economic recovery,” explained Williams. “We don’t expect the data to improve; in fact we expect things to continue to deteriorate in the coming months and for the Fed to step in with a rate cut which will is bullish for gold,” he concluded.

About Fuji Credit Asset Management:
Fuji Credit Asset Management is a fully independent, investment management practice that provides prudent, well-researched guidance and counsel to individuals, families and institutions with a need to accumulate and preserve wealth.

Fuji Credit Asset Management is a fee-only practice. This means that they are compensated solely by our clients and they neither accept nor solicit inducements or remuneration from product providers or financial institutions in return for endorsing or recommending particular investments or financial products.

Contact Fuji Credit Asset Management:
Osaka, Japan
81630238913
[email protected]
http://www.fujicredit.com