During the COVID-19 pandemic, gold is extremely popular with investors. At the same time, the cost of precious metals does not increase too much, which leaves the market confused a little. However, experts are sure that gold will still prove itself in the near future, having risen to no less than $ 2000 per 1 ounce.
Many analysts claim the bullish prospects of the gold market, linking the current situation with the monetary policy of most central banks. According to experts, in view of easing this policy, the yellow metal has good growth potential. Experts are sure that the current situation may push the current price of precious metals at $ 1,695 per ounce to further heights.
It can be recalled that the leading central banks launched the next cycle of quantitative easing (QE), which led to an increase in cash balances of the Bank of England, the US Federal Reserve, the ECB, the Bank of Japan, the Bank of Canada and the Reserve Bank of New Zealand. The result of a quantitative easing policy was a reduction in the real interest rate. It can be noted that it is the real rate, due to its sensitivity to the level of inflation and the monetary policy cycle, that affects the dynamics of “gold” quotes.
Earlier, during the crisis of 2008, the quotes of precious metals remained in an upward trend. Analysts draw a parallel with the current crisis, believing that a similar increase in gold is possible in the short-term. According to Ronald-Peter Stoferle, an expert on the precious metals market from the investment company Incrementum AG, now is the best time to buy a “solar” asset.
The specialist draws attention to the current “bullish” trend in the gold market, highlighting three stages: accumulation, public participation and distribution. According to him, the market is in the second stage at the moment. Thus, it is necessary to use each correction to increase your positions in the precious metal for a successful transition to another level. According to the analyst, the second phase is the longest and reaches a peak when the price of gold is actively growing, and forecasts for its dynamics become more optimistic.
In addition, the expert also said that in order to “saddle” the upward trend in the gold market, it is necessary to use every decline to accumulate precious metals. In this case, the expert is sure that investors can rely on a significant profit. With the advent of the third phase, long-term investors who were the first to buy gold will sell it to new investors, increasing their income.
According to some analysts, gold has excellent chances for growth up to $ 1900 per 1 ounce in the short-term, and up to $ 2000 and above in the long-term. There are all prerequisites for this, and even force majeure circumstances, primarily the COVID-19 pandemic, will not be an obstacle to the rise in the price of precious metals. On the contrary, fears associated with coronavirus and paralyzing the global economy will help “gold” quotes to reach price highs.
The material has been provided by InstaForex Company – www.instaforex.com
During the COVID-19 pandemic, gold is extremely popular with investors. At the same time, the cost of precious metals does not increase too much, which leaves the market confused a little. However, experts are sure that gold will still prove itself in the near future, having risen to no less than $ 2000 per 1 ounce.
Many analysts claim the bullish prospects of the gold market, linking the current situation with the monetary policy of most central banks. According to experts, in view of easing this policy, the yellow metal has good growth potential. Experts are sure that the current situation may push the current price of precious metals at $ 1,695 per ounce to further heights.
It can be recalled that the leading central banks launched the next cycle of quantitative easing (QE), which led to an increase in cash balances of the Bank of England, the US Federal Reserve, the ECB, the Bank of Japan, the Bank of Canada and the Reserve Bank of New Zealand. The result of a quantitative easing policy was a reduction in the real interest rate. It can be noted that it is the real rate, due to its sensitivity to the level of inflation and the monetary policy cycle, that affects the dynamics of “gold” quotes.
Earlier, during the crisis of 2008, the quotes of precious metals remained in an upward trend. Analysts draw a parallel with the current crisis, believing that a similar increase in gold is possible in the short-term. According to Ronald-Peter Stoferle, an expert on the precious metals market from the investment company Incrementum AG, now is the best time to buy a “solar” asset.
The specialist draws attention to the current “bullish” trend in the gold market, highlighting three stages: accumulation, public participation and distribution. According to him, the market is in the second stage at the moment. Thus, it is necessary to use each correction to increase your positions in the precious metal for a successful transition to another level. According to the analyst, the second phase is the longest and reaches a peak when the price of gold is actively growing, and forecasts for its dynamics become more optimistic.
In addition, the expert also said that in order to “saddle” the upward trend in the gold market, it is necessary to use every decline to accumulate precious metals. In this case, the expert is sure that investors can rely on a significant profit. With the advent of the third phase, long-term investors who were the first to buy gold will sell it to new investors, increasing their income.
According to some analysts, gold has excellent chances for growth up to $ 1900 per 1 ounce in the short-term, and up to $ 2000 and above in the long-term. There are all prerequisites for this, and even force majeure circumstances, primarily the COVID-19 pandemic, will not be an obstacle to the rise in the price of precious metals. On the contrary, fears associated with coronavirus and paralyzing the global economy will help “gold” quotes to reach price highs.
The material has been provided by InstaForex Company – www.instaforex.com
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