It is worth recalling that since 2011, an oversupply of precious metal began to be observed on the gold market, since from 2001 to 2011. the price of gold rose from $ 250 to $ 1,900 per ounce. But over the past three years, the situation has changed markedly. The supply of gold on the market has passed into a deficit stage.
In past years, the scarcity of precious metals has always led to a significant increase in its value. Gold may now be at the beginning of a new super-cycle in the commodity market, which could be the seventh since 1800, the analyst said. The price of gold has increased by more than 40% since 2018. The bank believes that investors can count on the continuation of the upward trend, which will bring them even greater returns.
Not only will the reduction in gold supply in the market support the value of the precious metal in the future, but other factors affect its pricing, namely: low interest rates, printing of unsecured money by central banks and a weakening US dollar. These trends will remain valid for a very long time. According to the bank's forecast, the cost of one ounce of gold should rise this year to $ 2,100-2,200.