Experts tell what's behind the record price of gold
The price of gold this year, broke the historical record, rising above 1911,6 dollars per ounce, while yellow metal on the market continues to go up, experts do not exclude that by autumn the price will exceed $ 2,000. This rally caused by a combination of several factors: the epidemic of the coronavirus, which resulted in the global crisis, the authorities ' attempts to remedy the situation, flooding the economy with money, and a new round of trade wars between the US and China, explained to RIA Novosti interviewed experts.
In his opinion, the value of an ounce of gold may exceed the mark of 2 thousand dollars per ounce, as the threshold in 1900 was overcome easily enough, and before the next record is not so much.
"From the beginning, the whole world is reeling from the effects of a pandemic coronavirus, which has worsened the already not optimistic economic forecasts. According to the IMF, the world economy will shrink by almost 5% this year. Indices of stock markets in the US are at record levels as traders are waiting from the authorities of new measures of fiscal and monetary stimulus. The regime of zero and negative interest rates is considered the new norm. In such circumstances, the yellow metal can not go up," agrees Vice-President of "Gold coin house" Alexey Vyazovskiy.
However, growth will not be steady, gold prices in the coming quarters will remain exposed to risks of significant correction, warns an analyst of management of trading operations on the Russian stock market IR "freedom Finance" Alexander Osin. According to him, in the third quarter of this year, the chances of prevailing decrease in the price of gold. "The target range for the price of gold at the end of 2020 with a probability of 63% is 1566-2000 dollars per ounce. However, in the second half of the year prices can re-test the levels of 1,850 per ounce in the scope of consolidation," said Osin.