Gold Prices to End 2020 at $1,700/Oz, Says Bank of America
The projected gold price jump is not necessarily based on economic uncertainties due to virus outbreak in countries outside of China.
SEATTLE (Scrap Monster): The latest gold price forecast report published by the Bank of America (BoA) Securities says that gold prices are likely to hit $1,700 per ounce by end of the current year. Also, the prices could even touch $2,000 per ounce in a possible bullish scenario.
According to Michael Widmer, precious metals analyst at BoA Securities, the gold prices will continue to get support from safe-haven demand and falling bond yields. As a result, the bank has decided to stick to its call of $1,700 per ounce for gold prices by end-2020. In the event of coronavirus turning into a global pandemic, gold prices could even breach the $2,000 per ounce level, he said.
The projected gold price jump is not necessarily based on economic uncertainties due to virus outbreak in countries outside of China. The yellow metal enjoys support from several structural, longer-term dynamics. The global economic policy uncertainties on account of ongoing trade conflict between world countries will lead to central banks across the world to go ahead with accommodative monetary policy. The ongoing decline in bond yields will continue to support gold prices.
The only headwind to bullish gold prices is possible fiscal stimulus measures by governments to counter rising inflation levels.
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