the Price of gold by the end of this year “with high probability” will maintain a positive trend and “may reach” the level of $2000 per Troy ounce. This opinion was expressed by the “Rosbalt” head of data analysis Department CEX.IO Broker Yuriy Mazur.
He recalled that “from the beginning of the crisis caused by the epidemic coronavirus infection, gold has secured a status of protective asset”.
“When one after another collapsed stock, commodity, currency and cryptocurrency markets, gold, on the contrary, not only not lost, but only increased in price. The reason is quite simple — in a moment of crisis, investors looking for safe assets that are minimally impaired, namely the gold in a given period of time is the best exhibits these qualities. Furthermore during the crisis of the noble metal is only added in the price”, — is spoken in the comment of the expert.
He notes that “for the first time in 9 years the price of gold exceeded $1,900 per ounce, and today already reached historical highs, trading at around $1942”.
“Such a rapid price increase due to several factors: institutional investors continue to buy up gold, governments replenish its reserves in anticipation of a second wave of coronavirus, and retail investors, the relatively limited set of instruments for the purchase of gold, often tend to Bank deposits, which are tied to precious metal,” explains Mazur.
in addition, he says, “gold, cryptocurrencies and other assets rise in value on the background of statements of the US government on the drafting of a law to overcome the effects of a pandemic coronavirus, which involves the holding of one additional issue”. “In fact, America is constantly to print out dollars, therefore, lose its value against other assets», — said the analyst.
In this regard, he is “inclined to believe that before the end of the year precious metal with a high probability, will retain the positive dynamics in the price and may reach $2000 per ounce”. “Also in gold will invest in more retail investors, and not just from the Middle East, where it has always been characteristic, but also from other countries,” concludes the expert.
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