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Uncertain times in the stock market increasingly put alternatives to equity investments in the investor’s spotlight. One of the most popular investments these days: gold. The market environment is causing experts to override the target price.
• Bank of America believes that the $ 3,000 gold price is possible
• Saxo Bank still exceeds this forecast
• More positive than negative factors.
Gold remains one of the most popular asset classes in times of crisis. Many market participants see the precious metal as a safe haven, gold is considered crisis proof and stable in value. For Bank of America commodity experts, this is one of the reasons why they are spending a very ambitious target price for gold.
Target Price: $ 3,000 in 18 months
The raw materials team at the second-largest bank in the US USA He is confident that the price of gold will rise to $ 3,000 in the next 18 months. Based on the current price level, the price of the precious metal could increase by more than 70 percent.
Experts cite several factors to justify their gold price forecast. BoA analysts see central bank policy as the main cause of a gold recovery, which is dramatically expanding its balance sheets as a result of the crown pandemic to contain the significant consequences for the economy. “The Fed cannot print gold,” said a report. Experts emphasize that gold is not available in unlimited quantities. High tax spending by currency holders could strongly devalue fiat currencies and thus accelerate the flight of gold investors.
Without a headwind, gold should not be able to overcome the crisis. The US dollar could weigh on the price of gold, as well as falling demand for jewelry in Asia or a significant reduction in fluctuations in the stock market. However, experts believe that these headwind factors will lose importance due to central bank financial policies and should hardly bear the price of gold on their rise.
Saxo Bank has even more confidence for gold
Bank of America’s $ 3,000 price target is already above average for a financial house. But with Saxo Bank, another bank has now entered the race for the highest gold price forecast. Ole Hansen, a commodity expert at the financial firm, even believes that gold could hit a new all-time high in 2021 and then be well on its way to its long-term price target of $ 4,000. In an interview with the Kitco News website, he explained that investors could only estimate in a few months how the measures taken by central banks would really impact. “We are at a standstill now because there are some negative factors, but I think they will fade away before the positive factors,” Hansen said of the factors that influence the price of gold.
Editorial office finanzen.ch
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