Buy gold until it is expensive. It may cost 3,000 USD in a year and a half.

IBIS InGold Editorial Office

06. 05. 2020

One of the members of the big four American banks, Bank of America, published his estimate regarding the price of gold. Under the headline “The Fed can’t print gold” – Fed will not be able to print out the gold – the bank said that in the next 18 months, the price of gold would skyrocket to 3,000 USD per troy ounce. It can thus exceed its current historical maximum by more than 50%.

 

The bank raised its target price estimate from 2,000 USD when the world had started to release money to help the economy, which is currently suffering in the aftermath of a pandemic of the coronavirus.

“As government fiscal spending grows multiple times, national currencies can come under great pressure,” analysts Michael Widmer and Francisco Blanch stated in the report of the Bank of America. According to them, investors will strive for gold even more than ever. The rise in the price of gold may be hampered by a strong dollar, reduced financial market volatility and lower demand for jewellery in India and China.

The bank expects the average price of gold to reach USD 1,695 per troy ounce this year and in 2021, it will reach 2,063 USD. Gold reached its highest price in 2011, when a troy ounce cost 1,921 USD.