The gold price currently remains in the range of 1,470 dollars. The precious metal had to relinquish its initial gains yesterday, then slipped into the red and finally closed unchanged after reports circulated that a trade deal between China and the US is unlikely to be closed this year. TD Securities is unaffected by the daily volatility and is releasing a new price target for gold in 2020.
Analysts believe that gold has the potential to rise to $1,650. They still see short-term weakness and the potential for gold to slide to $1,425. But in the coming year it is likely to go up. Analysts expect the second quarter in particular to be good for gold. The trigger for the gold price rise is expected to be a further easing of the Federal Reserve, weak economic growth and gold purchases by central banks. The company predicts two rate cuts by the Fed and the European Central Bank by mid-2020. TDS does not rule out a recession in the USA either, reports the internet portal goldseiten.de. “Our analysis still shows that 1,650 dollars per ounce of gold is possible next year as soon as the weak long positions give up and weak global economic growth ensures a low interest rate environment and continued accommodative monetary policy by the Fed.
THE SHAREHOLDER also believes that the rise in the price of gold this year has not been a flash in the pan. The current consolidation has earned the gold price honestly. However, the timing that TD Securities issues would be rather unusual. The second quarter is traditionally rather weak. THE SHAREHOLDER favours a scenario in which gold will consolidate after a year-end or start of year rally, before continuing to rise in the second half of the year and laying the foundation for new all-time highs.