Published: 2020.08.24. Chris Wood: the rise in the price of gold to $ 5500 is real

Chris Wood: the rise in the price of gold to $ 5500 is real - Preview

According to the expert's updated forecast, the price of gold has the potential to rise by 180% and reach the level of $ 5,500 per ounce. This forecast is based on calculations based on US per capita income based on the previous 1980 high for gold. Then the cost of the yellow precious metal rose to a record $ 850 per ounce.
Wood based his prediction with the following words: “In the 1980s, the price of gold was 9.9% of the per capita disposable income of $ 8,547. Now the cost of the precious metal is $ 1.952 per ounce, or 3.6% of income per capita, which is $ 53.747. To again reach the 9.9% mark, as then, gold must rise to $ 5.345 per ounce. This is a reasonable target for growth during the current bull market. "
However, according to the expert, weak demand for physical gold in developing countries, for example, in India, may become a negative factor for the global gold market. At the end of the first half of 2020, the demand for the yellow precious metal in this Asian country fell by -55% compared to last year to 166 tons.