Gold is expected to climb back to $2,000 in the future

 Analysts said gold prices could recover to $22, 000 a pound in the next year on the back of low interest rates, loose monetary policy and Asian buying.

Three analysts who will speak at this week's Asia Pacific Precious Metals Conference said gold could test the $2,000 mark in the next six months to a year, about 8 percent higher than its intraday price of 16 days ago, according to news reports.

Spot gold in New York was quoted at $1,859.49 per ounce at mid-afternoon.

Stone X analyst Michael O 'Connor said the current environment appears to be supportive of gold, given negative real interest rates in the United States and a lot of pent-up consumer demand in China, India and Southeast Asia that needs to be unleashed. Geopolitical risks are less elevated by the change of administration in the US, but developments in the Middle East and tensions between Russia and eastern Europe will keep demand for safe haven assets alive.

The Federal Reserve's decision this week is likely to maintain its previous message that it will not move its policy rate for at least another year, said Metals Focus Managing Director Michael Kavallis.

He expects dovish rhetoric from Fed officials to continue, but steady real Treasury yields and accelerated global use of the new coronavirus vaccine make it difficult for gold to rally again, even though the risk of the novel coronavirus variant remains.

Gold is expected to climb back to $2,000 in the future Gold is expected to climb back to $2,000 in the future Reviewed by Love share on 6/17/2021 Rating: 5

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