The first half of 2020 turned out to be quite volatile for the gold market. Nevertheless, the mark of $ 1800 per ounce was overcome quite confidently. In many currencies of the world, a new record was set for the cost of the yellow precious metal. How will gold behave until the end of this year? According to many analysts, the situation is now in favor of gold. Investment banks have revised their forecasts upward.
Over the past three months, the price of gold has shown phenomenal growth. According to some analysts, constant growth cannot last long. After the growth cycle, there is a correction. After reaching the peak values ​​in the gold market, prices may decline slightly.
In the first half of 2020, the price of the precious metal was in an upward trend. So how will events develop in the second half of the year? The gold market is near its peak values. For the past six months, we have not seen a significant and multi-week decline in prices.
Of course, against the backdrop of the "crown-crisis", there was a short-term correction in March. But it ended quickly, thanks to rising demand for defensive assets and disruptions to gold supplies around the world. The gold market is now very optimistic. Various forecasts speak of $ 1900 and $ 2000 per ounce in the near future.
We must admit that the fundamental data really speaks in favor of continued growth. The point is that Central Banks print large amounts of unsecured money. In the long term, this factor will support the precious metals market. However, investors should be prepared for a multi-week correction in the next two to three months, which will provide a chance to increase their investments in the yellow precious metal in the long term.
In many currencies of the world, the value of gold has set new records, except for the US dollar. It is highly likely that before the precious metal moves to new historical records in US dollars, a correction phase will first take place. This should not be forgotten.
According to analysts, the price of gold could correct to the level of 1,670 or even up to $ 1,600 per ounce. Only after the completion of the correction will gold get another chance to start climbing to $ 1900 in the second half of the year. Thus, this year may be the third consecutive year that the price of gold has brought its investors an average return of 20%. On the other hand, over the same three years, the purchasing power of the US dollar fell by almost half in relation to gold.