According to analysts of the Australian-New Zealand bank ANZ, it is not so easy to actually determine the fair value of gold as it might seem. This is reported by Kitco News with reference to a review of the bank.

According to market analysts for precious metals from ANZ Bank, at present, the adequate price for yellow precious metals is $ 1,400 per ounce. At the same time, the main pricing factors are the Fed interest rates, US inflation and the US dollar.

“We examined all the traditional factors influencing the gold market and compared them with precious metals to understand how overrated or underestimated it is. As a result of this, we found out that gold is affected primarily by interest rates, inflation and the US dollar. Our model has shown that the fair price of gold at the moment is approximately $ 1,400 per ounce, ”said investment bank analysts.

“However, a decrease in gold to $ 1,400 per ounce could catapult the precious metal to $ 1,700 in six months,” analysts said. According to the bank’s model, price reduction will attract a wide range of investors to the market, which will give an impetus to the next price rally. Fundamental data indicate that gold is an excellent asset for diversifying the investment portfolio. Investors are well aware of this and are waiting for the right moment to increase their positions in precious metals.

The ANZ Bank also indicated that the price of gold could be higher than current levels if the money supply in the USA (money aggregate M2) were provided with physical precious metals. In this case, one ounce of yellow precious metal would now cost $ 25,000.