Central banks in many countries of the world are reducing their dependence on the US dollar. For analyst Jeff Kerry of Goldman Sachs Investment Bank, this fact is the best argument for investing in gold. His colleagues predict a rise in gold prices to $ 1,600 per ounce in 2020.

Jeff Kerry has been managing the commodity department at an American bank for many years. At different periods, he gave various forecasts for the price of gold and advice to customers of the bank. For example, in April 2016, he called for a bet on falling gold prices, and before a sharp collapse in prices in 2013, he advised selling yellow precious metals.

However, over the past few years, his attitude to precious metals has noticeably changed for the better. In a recent interview with Bloomberg, Kerry said that investors have now taken a wait-and-see attitude and are more likely to accumulate cash. For this reason, they prefer to keep their money in gold and government bonds.

The expert also said that the purchase of gold by the Central Banks is an important factor in the precious metals market. Central banks of some countries of the world are reducing the share of the American dollar in their reserves, while gold, on the contrary, is increasing. The demand for gold from the Central Bank “absorbs” 20% of the global supply of yellow precious metals in the market.

According to the basic forecast of the American bank, according to the results of the current 2019, Central banks will buy 750 tons of yellow precious metals for the reserves of their countries. At the same time, the analyst prefers gold rather than government bonds. In a recent review, Goldman Sachs analysts once again confirmed their forecast for gold prices. It follows that over the next 12 months the price of gold will rise to the level of $ 1,600 per ounce.