By
Mayowa Adebajo
December 4th, 2023
More and more economies are starting to reopen. It is expected that in the long-term, gold prices will benefit from the ongoing situation. Now, the gold price is $1,709.50 per ounce.
In March, the gold price significantly declined and failed to surpass the November 2012 high of $1,754. Recently, the price of the precious metal started to pull itself back, trading at above the $1,700 an ounce level on May 1. And some experts believe that gold could break the price records it has seen earlier.
UBS Investment Bank’s precious metal strategist Joni Teves said:
“There is growing potential (for gold) to break $1,800 (per ounce) in my view.”
As Teves has explained, under the current uncertain conditions, investor interest continues to grow. The gold price target the expert is predicting in the near term is $1,790 per ounce. She stated:
“Gold is becoming attractive in this environment where uncertainty is very high, growth is expected to weaken, and at the same time you have negative real rates which make gold attractive to hold as a diversifier in investor portfolios.”
Invesco’s chief investment officer Kristina Hooper has about the same opinion. According to Hooper, the potential price range for gold this year is between $1,500 and $2,000 an ounce. But the way the global economy will further react to the coronavirus pandemic is the key factor to determine the price.
Hooper said:
“All that the Federal Reserve has done and all that the US government has done, gold looks more attractive. We have a scenario where investors are concerned about growing government debt. They’re also concerned about current currency fluctuations and as we know about gold is a currency without a country.”
Another expert, Gainesville Coins’ Everett Millman, is also bullish about gold. He said:
“It wouldn’t take a whole lot to push gold up to $1,800.”
However, Millman believes it will be a small wonder if the price will not go so far in May, as ‘we have stayed well above $1,500 for so long.’
Gold Price 2020 Change
The 2020 opening gold price was $1,520.55. Soon, it cleared the 2019 high of $1557. In February, the price of gold marked the monthly low of $1548 during the first week but hit 1,682 in the second half of the month. Trading in March was highly controversial, with the price first going higher, then dropping to a new low of $1,472.35. Movement in April was mainly positive, allowing analysts to make an optimistic prognosis.
More and more economies are starting to reopen. In the short-term, it will not have much of an impact on the gold prices. But in the long-term, they will benefit.
TD Securities head of global strategy Bart Melek stated:
“Ultimately, once there is a clear path to growth with all the trillions and trillions of dollars worth of stimulus coming in, there will be renewed concerns that this whole fiscal imbalance around the world may be monetized and that real interest rates will stay lower for longer. I think gold moves higher.”
Now, the gold price is $1,709.50 per ounce.
