Bloomberg Analysts Believe that the Price of Gold Can Double in the Next 3 Years

The price of gold will outperform that of silver in the remaining months of 2020 – at least this is the forecast provided in a recent Bloomberg Intelligence report. The authors believe that an ounce of gold will be worth $4,000 by 2023. Thus, this would place the current price at the start of the uptrend.

“The done-deal nature of continued central bank easing is a solid foundation for gold, but less so for silver and copper prices. Industrial metals are dependent on more fiscal stimulus and a global economic rebound, yet increasingly vulnerable to normal stock-market mean reversion,” says the monthly commodities report.

The scenario with silver outperforming gold requires several factors: rising bond yields, a stronger US dollar, less volatility in the stock market, and global economic recovery. However, this scenario is highly unlikely.

“Gold should continue appreciating into year-end, notably vs. silver, copper and base metals, which are more at risk to a wobbly stock market and slack global economic growth, in our view,” continues the report. “If stock prices decline, gold's upper hand should accelerate as base metals come under pressure.”

Analysts believe that the gold rally has only just begun. If we take the events of 2008-2011 as a model, the price of the yellow metal could grow to $4,000 by 2023. As a reminder: back in 2008, gold bottomed out at $700 but eventually grew to $1,700 by 2011.

The stock market will continue to influence the price of gold.

“If history is a guide, equities will eventually experience a bear market. Stocks' rapid ascent the past few years has left gold by the wayside,” concludes the expert.

Overall, analysts are optimistic about gold's future prospects, though they remind readers that it can take quite a while for the price to break through the critical resistance at $2,000.

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