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Precious metal with upside potential: Bank of America sees gold at $ 3,000 – Saxo Bank even outperforms the price target | message

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• Bank of America believes $ 3,000 gold price is possible
• Saxo Bank still exceeds this forecast
• More positive than negative factors

, Precious metal with upside potential: Bank of America sees gold at $ 3,000 – Saxo Bank even outperforms the price target | message, Forex-News, Forex-News

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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’s commodities experts, this is one of the reasons why it is spending a very ambitious price target for gold.

Price target: $ 3,000 in 18 months

The commodities analyst team at the second largest US bank is confident that the gold price will jump 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.

The experts cite various factors to justify their gold price forecast. BoA analysts see the policy of central banks as the main cause of a rally in gold, which is drastically expanding their balance sheets as a result of the corona pandemic in order to contain the significant consequences for the economy. “The Fed cannot print gold,” said a report. The experts emphasize that gold is not available in unlimited quantities. The high fiscal spending of the currency keepers could strongly devalue fiat currencies and thus accelerate the flight of investors in gold.

Without any headwind, gold should not be able to steer through the crisis. The US dollar could weigh on the gold price as well as falling jewelry demand in Asia or significantly reduced fluctuations in the stock market. Nevertheless, the experts believe that these headwind factors will lose importance due to the central banks’ financial policies and should hardly burden the gold price on its way up.

Saxo Bank even more confident for gold

Bank of America’s $ 3,000 price target is already above average for a financial house. But with the Saxo Bank, another bank has now entered the race for the highest gold price forecast. Ole Hansen, commodity expert at the financial firm, even believes that gold could reach a new all-time high in 2021 and then be on its way to its long-term price target of $ 4,000. In an interview with the Kitco News website, he explained that it would take a few months before investors could assess how the measures taken by the central banks would actually impact. “We are in a stalemate now because there are some negative factors, but I think they will fade before the positive factors do,” said Hansen of the factors influencing the price of gold.

Editorial office Forex-news.com.net

More gold price news

Image sources: Worldpics / Shutterstock.com, David Biagini / Shutterstock.com



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