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Standard Chartered expects a new jump in the price of gold

A top Wall Street analyst predicts gold will come out of the range this year.

The statement of Standard Chartered’s commodity analyst Suki Cooper is backed by the recent fall of gold, recording its lowest level in 2019. According to Suki, gold enters resale territory.

A key argument for its bullish stance on gold is precisely the retention of the Fed’s interest rate policy. It even expects interest rates to remain unchanged even in 2020. Cooper says this is a potential catalyst for a new golden rally that Wall Street continues to ignore.

“The Federal Reserve will be” in pause “in 2019 and 2020 because it is preparing its preparations to meet the counter-winds that are expected to hit the economy in 2021.” – says Suki.

Usually investors view gold as a safe heaven tool during economic turmoil. Cooper also notes that gold follows a historical pattern of behavior that shows gold is recording new peaks when the Fed breaks a cycle of interest rate hikes, which has even been followed by their decline.

The Commodity analyst expects the rise in the price of gold to come from the interest of central banks and countries like India and China, which continue to stock with gold at unprecedented rates.

“We believe the upward movement will materialize over time.” In Q4, we expect the gold price to average around $ 1,325 per ounce, because then we expect the dollar to weaken as well as the yield on bonds. – says Suki Cooper.

Her expectations are that precious metal will rise to $ 1362 by the end of this year. Its forecast is even more optimistic for 2020. It expects gold to stay at an average price of about $ 1375 in 2020.

Source: CNBC


 Trader Martin Nikolov


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