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Last Tuesday, the price of the yellow metal recorded its highest since 2012, reaching $ 1,788 per ounce.
Amid the coronavirus pandemic, Bank of America experts raised the 18-month gold price target to $ 3,000 per ounce, more than 50% above the existing price record, Bloomberg reported Tuesday, citing a report by the body entitled ‘The Fed cannot print gold’.
Previously this forecast was $ 2,000. The current price of the yellow metal is about $ 1,730 for an ounce. Meanwhile, last Tuesday, the price of gold recorded its highest since 2012, reaching $ 1,788 per ounce.
“As economic output contracts sharply, fiscal outlays increase and central bank balances double, fiat currencies could come under pressure,” experts say, adding that “investors will seek gold”.
Bank of America predicts that gold will trade around $ 1,700 for an ounce in 2020 and will rise to more than $ 2,000 next year. The precious metal has appreciated by 11% so far this year. The record $ 1,921.17 per ounce was set in September 2011.
“Without a doubt, a strong dollar, less volatility in the financial market and less demand for jewelry in India and China could continue to be winds against gold,” the report explains. “But beyond the traditional foundations of gold supply and demand, financial repression has returned to a extraordinary scale“the experts conclude.
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