In this period, gold forecasts are reaching interesting levels. To help out? The many uncertainties.
Panic on the markets
First it was the duty war and the unpredictable Donald Trump. It was he in fact that with his tweet it was good and bad weather. Suddenly. Then the coronavirus broke out. At the beginning, when the emergency was still not well managed, panic on the markets had favored the prices of the yellow metal. Then the big storm in March ushered in the bear market. And gold was starting to run. Undoubtedly, the return of the Federal Reserve and its ultra-accommodating positions have helped. The same ones that were adopted with the Lehman collapse of 10 years before and that then, the rest of the central banks would have adopted. Yesterday as today.
Currently, also thanks to the progressive reopening of the various economies, the price of gold that has exceeded and exceeded $ 1700 an ounce in the last few sessions has recorded a first drop below this level. But optimism about the yellow metal prices returned quickly and now the ounce is listed at $ 1,722. And with all due respect to the bears, the outlook for gold does not stop there. In fact, for Ubp, gold could easily continue to rise up to $ 3000.
The determining factor
A forecast that seems to run counter to what is happening on the indices. But that instead takes into account the determining factor: central banks. Coin printing has been extremely extensive in recent years and uncertainties about the future have not been dispelled. In fact, the S&P 500 has returned above the levels set at 3000 points, the Dow Jones above 25,000. And also in Italy, the Ftse Mib can boast particularly interesting closures during this week. Currently the tricolor index reaches more than 1.8%. Everything solved? Not exactly.
The price of gold
Let’s take a step back. From August 2000 to August 2011 the S&P 500 index plummeted by over 25%. Losing a quarter of its value. But in the same period the price of gold has gone up by almost 600%. Between February 19 and March 23 of this year, a similar thing happened because of panic from coronavirus. And even if the reasons that determine a growth in gold prices have always been the subject of discussion, there is no doubt that fear and uncertainty are among them. All this because, it should be remembered, Covid-19 is returning to South Korea, with Seoul forced to close again due to the threat of outbreaks. All to the advantage of the yellow metal