Large-scale revisions to forecast gold prices hit the market this week as analysts assess the impact of the COVID-19 crisis.
Citing unprecedented fiscal and monetary stimulus, B. Riley FBR analysts said Tuesday they expect gold to rise to $ 2,500 an ounce in the third quarter and continue trading at those levels in the fourth quarter of this year.
Another TD Securities analysis released yesterday also confirms the positive sentiment for the gold price, with their forecast for prices at about $ 2000 an ounce by the end of the year.
We witnessed large spreads this week between SPOT prices and futures markets. Physical supply problems can also increase demand and reduce supply. Traders have been alarmed to suspend deliveries from the most productive gold refineries located in the southern Swiss city of Ticina, namely Valcambi, Pamp and Argor-Heraeus, as they appear to have discontinued or reduced their capacity.
There are similarities between how the price of gold reacted during the financial crisis of 2008 and now, which means that precious metal can improve its previous record highs. With all-time highs breaking in gold, it is very likely that we will see a significant increase in prices.
On the chart – monthly levels of resistance and support. Holding the price at current levels and closing the monthly chart above $ 1562-1592, would mean that a further uptrend seems likely.
Junior Trader Radi Djuma