Kriptokoin.com –Although the price of ounce of gold tried to cross the $ 1800 barrier last week, it remains a gold -decline tendency compared to Capital Economics.
According to Capital Economics, Gold will continue with a decline to the rest of 2020.
According to Capital Economics chief commodity economist Caroline Bain, the main reason for low price expectation is that the demand for gold from Asia is low.
Bain used the following statements on Thursday:
“We are still expecting that gold will continue with a decline in 2020. Although it can lead to increases in low yields in the economy and weak dollar gold price, the normalization of economic activities in the rest of the year will further reduce its demand for safe port demand.”
Furthermore, one of the 2020 revisions of the company’s center was a faster economic recovery after the pandemi.
In summary, we expect a sharper recovery in economic activity in the coming months, while increasing the investment in risky assets to meet the losses, it will put pressure in the US dollar, ”he said.
Capital Economics predicted that gold prices will fall to $ 1600 per year by the end of the year, but that this amount could go down until the second quarter of next year. During the spelling, the price of ounce of gold is $ 1,762.
According to Capital Economics’ predictions, the biggest risk is the closure of the economy with a second coronovirus wave.
“Obviously, time is still full of uncertainty and we will have to review our gold forecasts in a future. An important risk is the ‘second wave’ epidemic, but also the possibility of underestimating the inevitability of return in economic activity.”
While falling for gold is expected, the appearance in other metals is optimistic
Meanwhile, Capital Economics’s forecasts for other industrial metals are quite optimistic and foresee a larger recovery than expected in demand.
“We have increased most of our price estimates of industrial metals at the end of the year. With the strongest economic data in China and the spread of economic recovery, China’s GDP growth will return to pre -virus levels this year. Moreover, the main source of growth will be caused by industrial metal. We expect it to increase to the end. “
Price prediction of Capital Economics for other metals
