It is worth recalling that after a record rise until early August, the gold price experienced a significant drop in September. The same goes for silver. At the moment, the yellow precious metal is trading 10% below its all-time high of $ 2,069 per ounce, which was reached on August 6, 2020. How will pricing develop in the precious metals market in the future? Investment Bank Wells Fargo is optimistic about the future prospects for the yellow precious metal.
The bank believes that now is again an excellent chance for investors to increase their investments in gold in the long term. “Our bank buys gold. The current correction by 10% is explained partly by the overheating of the market, and partly by the strengthening of the US dollar. It should be admitted that the growth of gold from the beginning of the year to August 7 by + 37% was dramatic, "- this was the point of view voiced by LaForge. The analyst is positive about the further rise in gold prices.
“Fundamental data speaks in favor of the gold market. Interest rates are kept very low and the money supply continues to grow (quantitative incentives in action). Most likely, the strengthening of the US dollar will end soon, ”the analyst shared his opinion. In conclusion, he said the following: “We view current gold prices as an excellent opportunity to buy precious metals in the future. We maintain our upward forecast for gold until the end of 2021, when the cost of the precious metal will be much higher from today's values. " According to the bank's forecast, which was announced back in July, by the end of 2021, one ounce of gold will cost from $ 2,200 to $ 2,300.