According to Bloomberg Intelligence, gold is a favorite this year in terms of growth in returns for its investors. Kitco News news agency experts analyzed the opinions of some analysts on the precious metals market.
One of the main reasons for the increase in gold prices in the current year 2020 is the weakening of the Chinese economy, as well as a decrease in the yield of US government bonds. Therefore, in the current macroeconomic environment, precious metals have the best chance of continued growth.
According to analysts, the coronavirus epidemic in China will have a negative impact on the country's economic development. The growth of the Chinese economy will slow down. Under these conditions, gold will be used as a protective asset, which means that it has better chances for growth in comparison with other precious metals. According to the forecast, the bull trend in the gold market is just beginning. The recent rise in value can be seen as a market recovery. Now the next level of resistance will be the mark of $ 1,700 per ounce.