According to an analyst with Goldman Sachs, an American bank, the risk of a recession in the US economy will play an important role in the rise in gold prices. The bank believes that in the fourth quarter of 2019, the cost of yellow precious metals will increase to $ 1,600 per ounce.
The investment bank is very optimistic about the future prospects of the gold market, which will receive support for growth amid fear of a recession in the US economy. It is important to understand that the main fears of financial markets are weak data on the US labor market and a slowdown in economic growth. This was reported by Kitco News with reference to a review of the bank.
According to the analyst, the risks in the American economy will remain within the normal range, which means that next year we should not count on the onset of a recession. According to the bank’s forecast, by the end of the current 2019, the price of gold may reach the level of $ 1,600 per ounce, and then stabilization will occur at this point. Even if this forecast is not realized this year, it will remain relevant until 2021.
The American bank emphasized that the long-term forecast for gold prices will largely depend on US economic growth. The fact is that every year the likelihood of a recession in the American economy will increase. That is why the terms for gold growth are extended several years ahead.