How will the recent political events affect the gold market? Some investment banks have updated their gold price forecast. Most analysts gave a positive forecast regarding the prospects for the yellow precious metal.

Over the past few days, gold has again been trading below $ 1,500 an ounce. The market of precious metals is consolidating. Financial markets hope to improve market data and continued growth in the stock market. How much have gold investment forecasts changed since recent political events?

Commerzbank

Commerzbank analyst Karen Jones of Germany believes that lowering gold to $ 1,459 an ounce has laid the foundation for the next price rally. As a long-term goal, she calls the price level of 1690-1704 dollars per ounce. Overcoming the price of $ 1,515 per ounce will create conditions for a return to the record value of this year at $ 1,557.

Standard chartered

The British bank Standard Chartered predicts that the next price rally in the gold market will begin in the event of an increase in investment demand for yellow precious metals. “Despite the high rates of investment in ETF funds, the next jump in demand will come from private investors. Now they are waiting for confirmation that the interest rates of the Fed will really decrease, and the stock market has completed its growth, ”the bank analyst said. According to the forecast, the average price of gold in the 4th quarter of this year will be $ 1,510 per ounce.

Credit suisse

Swiss bank Credit Suisse gave a similar forecast for gold prices. Risks in the global economy and low interest rates will be factors in the growth of the price of gold. In the first half of 2020, the cost of precious metals will be $ 1,600 per ounce. By the end of this year, gold should return to around $ 1,550. “Apparently, the United States and China are still far from concluding this trade agreement, and the situation in the US economy does not give cause for joy.

Hsbc

Analysts at the British bank HSBC expect gold to rise to $ 1,555 per ounce by the end of this year. In 2020, the bank predicts the cost of precious metals at $ 1,605. Growth factors will be the “soft” monetary policy of the Central Banks, low interest rates and numerous geopolitical risks.

Citigroup

The American bank Citigroup published a long-term forecast for two years in advance, according to which the price of gold should rise to $ 2,000 per ounce, that is, from the current level the growth will be 34%. The main drivers of growth will be negative real rates, the risk of recession in the global economy, the growth of geopolitical risks, as well as the steadily high demand for gold from Central banks and private investors around the world.