Investment Bank BMO Capital Markets believes that next year the price of gold will receive support from the soft monetary policy of the Central banks of some countries of the world. According to the forecast, the average cost of yellow precious metals in 2020 will be $ 1,501 per ounce.

The bank’s review says that at such a price of gold, many gold mining companies will be at the level of profitability, it will be beneficial for them to develop the extraction of precious metals. Analysts predict the average price of silver next year at $ 18.20 per ounce.

The bank predicts the continuation of soft monetary policy by the Central Banks, as well as a further decrease in interest rates, as inflation remains low. The forecast says that the next 2020 will be a year of consolidation for gold and silver, rather than a year of rapid growth. Some support factors for the third quarter of 2019 are still valid, but next year they will not be enough to resume the price rally.

Central banks will support the gold market not only with their low rates, but also with regular purchases of precious metals for the reserves of their countries. This is due to the de-dollarization policy they pursue in order to reduce their dependence on the US dollar. However, you should not rely on large volumes of purchases and a significant influx of funds into ETF funds, as was the case in 2019, bank analysts say.