Will investors love gold?
Gold has always been considered a precious metal, making its own in the eyes of others a wealthy man. Nowadays, it often becomes an attractive object for large investors. During this year, physical gold has grown in popularity as an investment asset. As a result, investors bought 6.5 tons of investment coins and bars in the third quarter, according to the WGC.
Gold is a reliable way to shelter capital for the long term and is not reflected in systemic institutions like real estate, stocks or deposits. In general, the metal protects reliably against political, military and inflationary risks.
Until the end of the year, the price of gold will correct. Investors expect a pause in interest rate hikes, and the price of gold in dollars has an inverse correlation to the rates.
During the outgoing week, the gold price hovered around $1,750 per troy ounce, but that is still a corrective stage. A new growth is possible in December, and even a Christmas rally. The next year there are all chances to bypass the historical record of 1990 dollars and go beyond the psychological mark of 2000 dollars per ounce.
However, such a record will not hold for a long time - fans of short-term investments should pay attention to it. The regulators will be forced to keep raising rates, and gold will start to weaken. It will end in the spring or closer to the summer, but then a second wave of correction may begin. "
A significant factor could be the development of the coronavirus situation in China. Quarantines are greatly slowing down jewelry and investment metal consumption. In addition, lower economic growth in China and in the world as a whole may have a negative impact on the demand for gold jewelry. The average annual price of gold in 2023 can be estimated in the range of 1780 dollars per ounce.
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