According to the forecast of the investment bank, over the next three months the price of gold may rise to $ 1,600 per ounce. The following factors will contribute to this growth:
1. Geopolitical risks and the coronavirus epidemic in China. At present, the situation in China does not have a positive effect on the gold market, as the country's inhabitants behave with restraint and prefer to stay at home so as not to become infected.
2. "Dedollarization". Here we are talking about a process in which some countries abandon the use of the US dollar in mutual trade and switch to the use of national currencies. The expert also pointed to the policies of some central banks, which are actively buying gold for reserves in order to reduce dependence on the US dollar.
3. The amount of savings from citizens. Against the background of low (and even zero) interest rates on deposits, many depositors try to invest their savings in gold in order to save them from total loss during crisis events. For example, last year, precious metals showed a yield of + 22% (in euros).