Will gold reach the $ 15,000 target?

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Gold's near-term prospects excite traders and investors. Analysts are careful in their forecasts, but some of them offer great solutions.

The short-term planning range for the dynamics of gold still does not go beyond $ 2,000 per ounce. On Wednesday, the yellow metal started to move upwards after the prolonged decline. Yesterday, futures for precious metals noticeably increased, breaking through the target of $ 1,700 per ounce. Earlier, gold's price found support near $ 1,680 per ounce and in the morning of March 10, it was trading at $ 1,713 an ounce, trying to expand the current range.

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Analysts believe that the specified metal received strong support from the US dollar's weakening and decline in the yield of US Treasury bonds from 12-month highs. It should be noted that these factors positively affect the price of commodities, which include the yellow metal. Investors are willing to invest in it, as they are looking for long-term instruments to hedge inflation risks. Despite the decline in recent weeks, gold still leads the protective assets. Investors primarily turn to it during periods of strong market volatility.

However, there are different opinions when it comes to the price dynamics of gold. Some experts even make ambitious forecasts. As an example, representatives of Goehring & Rozencwajg are almost sure that gold's value will not only rise, but also reach a target of $ 15,000 per ounce. Analysts from this company believe that the downward trend of the precious metals market will turn into the opposite this 2021. Gold is expected to return to an upward trend in the second half of this year. According to Goehring & Rozencwajg experts, the second stage of the bullish market will begin this period.

At the same time, the company believes that inflation will act as an impulse that will lead gold upwards. They also assume that the key metal may rise to $ 15,000 per ounce at the end of the current bullish cycle. However, experts stressed that this is only possible in the long term. Therefore, they recommend aggressive market behavior for investors who adhere to a long-term planning strategy, as this will provide large-scale purchases of gold and silver with each price correction.

As stated by analysts, the yellow metal will retain its "safe haven" status in the next few years. They are confident that its protective function is still relevant and will remain so. A strong support for gold is provided by the decline in the purchasing power of the dollar by 95%, which is due to endless issuance of the US dollar. According to economists, the current trend will extend for quite some time.

The material has been provided by InstaForex Company - www.instaforex.com

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