Most large investment banks agree that in the coming year, the rate of the American currency will decline. On the contrary, the price of gold will begin to grow. They provided relevant forecasts for the price of the yellow metal for 2019.
In the outgoing year, the minimum value of gold was fixed in August, which was only 1,184 per 1 ounce. In the future, the precious metal went up by 5%. Experts of Bank of America Merrill Lynch have posted positive comments on the gold market. According to analysts of the bank, a weak US dollar, rising inflation and low interest rates will be catalysts for the growth of the price of the yellow metal in 2019. They do not exclude an increase in the value of gold to the level of $1,400 for 1 ounce and the cost of the precious metal will be $ 1,296 by the end of 2018.
According to the strategists of the Dutch bank ABN Amro, in the coming year, the yellow metal will rise in price to $1,400 for 1 ounce. Experts believe that growth drivers are the weakening of the US currency, low yields on government bonds and an increase in demand for gold in the PRC.
Experts from the Chinese ICBC Bank are confident of a significant increase in gold prices in the third quarter of next year. They believe that by this time, 1 oz of precious metal will give $ 1320. By the end of this year, the average price of gold will be $ 1,293, according to ICBC.
TD Securities analysts give their forecast for the value of the yellow metal in 2019. They are convinced that the price of gold will rise to $ 1,300 for 1 ounce. According to experts, the driver of rising precious metal prices will be a slowdown in the Fed rate hike.
Analysts of the French bank BNP Paribas disagree with the previous forecasts on the value of gold in 2019. The position of financial institution experts is opposite to the opinion of the others: they claim that gold prices fall below $ 1,200 per 1 ounce. Bank specialists are confident in strengthening the US currency, so the cost of the precious metal will not exceed $ 1,145 for 1 ounce. BNP Paribas believes that investors will prefer US government bonds as a safe haven instead of the yellow metal.
The material has been provided by InstaForex Company - www.instaforex.com