Analysts at the German bank assume that gold will end this year at $ 1,900 per ounce, which is a downward revision of the forecast from the bank's previous forecast, which indicated a rise in price to $ 2,000 per ounce.
However, according to them, this downward correction was only a tactical retreat. The bank remains a long-term bull in the gold market and has now set a price target of $ 2,000 for 2022. "As soon as the US Federal Reserve begins to reduce the volume of purchases of bonds, the main obstacle to the price of gold should disappear," - said in a review of the bank. In addition, our economists expect a significant decline in inflation in the fourth quarter. This should calm the wind in the sails of interest rate hike expectations that have just emerged, ”analysts said in their review.
“In the next year, 2022, it is even more likely that inflation will fall below the Fed's target level again, which should further exacerbate expectations for a rate hike. Accordingly, we expect a significant rise in gold prices over the next 12 months. ”