The global precious metals market is on the rise, especially gold. The cost of the yellow metal goes through a phase of consolidation. Experts offer bold forecasts for next year, and the market expects the next driver of precious metal growth.
Having reached the $1,460 mark, gold slightly retreated from its positions on Tuesday, November 26. The precious metal traded at $1,459 per ounce yesterday. Experts consider the $1,447 level as the immediate goal of the XAU/USD pair, while they allow a fall to $1,444 per ounce.
The XAU/USD pair slightly adjusted in the morning, reaching $1,457.15 per ounce.
The pair went up in the future, trading near the level of $1458.06. In the short and medium term, experts predict an upward trend in precious metals. The upward movement will continue next year, experts said.
The main driver of pressure on the gold market, analysts believe the increased likelihood of signing a trade deal between the United States and China. Another factor restraining the growth of precious metals is the Federal Reserve's policy aimed at slowing down the process of lowering interest rates. Nevertheless, the currency strategies of the largest investment banks did not revise their previous forecasts. Most of them are optimistic and offer positive scenarios for gold in the long run.
1) Goldman Sachs
According to the forecast of the leading US bank, the cost of the yellow metal will reach $1,600 per ounce in 2020. Experts believe that global political tensions and weak market data will support the precious metal market.
2) UBS
Specialists of the Swiss bank adhere to a similar position, believing that the price of gold will increase to $1600 per ounce in 2020. UBS is confident that the current consolidation in the precious metal market is a natural process, thanks to which investors can earn on further growth. Support for the yellow metal will have uncertainty in the markets and a further reduction in interest rates.
3) Morgan Stanley
Analysts at the largest US investment bank believe that the price of gold will be $1,511 per ounce. Morgan Stanley believes that the reasons for this will be a weakening stock market and a slight decrease in the US currency.
According to some analysts, the yellow metal market is currently waiting for a powerful driver for growth. In the coming year, gold will continue to rise, and this trend will continue for a long time, experts said.
The material has been provided by InstaForex Company - www.instaforex.com