What are the expectations for the price of gold in 2020?

Expectations for the year 2020 regarding the price of gold revitalized the market with the start of the new year.

The year 2019 was particularly positive in light of the gradual increase in the price of gold from $ 1,280 in January until it broke the $ 1560 barrier for one ingot in the first days of September.

For this reason, many wondered if he could maintain this pattern in the new year.

In a report published by the Italian website "Mani", the writer Christina Galliarducci said that the expectations for 2020 regarding the price of gold were based on an analysis of all positive and negative aspects that could affect the price of the yellow metal during the next year.

It is noteworthy that the trade war and monetary policy of the world's major central banks, as well as economic growth, occurred sifting them with the aim of setting good expectations about the price of gold in 2020.

Impact of the Federal Reserve System
The author pointed out that the US Federal Reserve (the central bank) will be the undisputed main factor during the coming months, especially in the wake of the reduction or increase in interest rates and their impact on price fluctuations, so that the expectations of 2020 regarding the price of gold cannot ignore the analysis of the position of this institution.

Although the Reserve Bank, after its last meeting in December, halted the downward cycle in the cost of money, some observers considered it could continue to have a positive impact on the precious metal.

Historically, expansion programs have always provided support for prices, so this could also act as a catalyst for the rally in the coming months.

Trade war
The writer indicated that experts cannot ignore the trade war between the United States and China in their expectations for the price of gold during the new year.

Although the two countries reached a preliminary agreement, this is not sufficient for the markets to build a more positive stance.

According to many experts, the US 2020 elections will push Donald Trump to reach a final agreement with Beijing, which will remove fears and doubts, and lead to more risk appetite, which would lead to gold being affected.

Economic growth
During 2019, the phrase "economy and recession" was often used in the same sentence.

It is noteworthy that fears of a slowdown, urged the central banks to reverse the course of behavior and adopt a more appropriate monetary policy. At the end of the year, things improved and the specter of stagnation moved away, which made many market watchers expect a rebound in the new year.

In fact, even in this case, the risk fading will lead investors to dare to dump gold.

Britain's exit from the European Union
Boris Johnson's victory temporarily clarified the picture, especially as it removed the specter of Britain's non-exit from the European Union. Moreover, the UK skeptic forced the experts to adopt a positive attitude.

Height above 2000 dollars
Analysts of the independent "Strategy" company were the first to make interesting forecasts about the price of gold in 2020, as they announced their optimism about prices.

According to the estimates of the company’s president and designer of its global strategy, David Roche, the price of the precious metal will rise to $ 2,000 during this year due to the monetary policies adopted by central banks, which will lead investors to search for “alternative currencies” for traditional currencies.

Roche added that gold will benefit from these changes because it is much less expensive compared to those who pay negative taxes on deposits.

According to his forecast for 2019, he indicated that the price of gold will rise to $ 1,600, while the new year will see a further increase in the price.

UBS word
UBS has released new and interesting forecasts for 2020 about the price of gold, which will definitely reach more than $ 1,600 in the coming months.

It is noteworthy that the lack of clarity in different views and unconfirmed expectations will support the price increase, which will continue to rise in the year 2021.

"Given our global expectations for 2020-2021 regarding the economic and market outlook and taking into account the variation in the overall potential consequences of the conflicts taking place today, we believe that investors should invest in gold, especially since the cost of reservation will remain low," the bank said in a speech.

Pessimist Bank of Natixis
According to Bernard Deha, chief commodity analyst at Bernard Deha, the price of gold in 2020 will not be positive, as is the case in 2019.

On the other hand, trade clarity, a recovery in global growth and less doubts will make investors more confident.

For this reason, the decision to review the price estimates, which will drop by an average of $ 1370 in the coming months, came.

2019 Safe Haven
The author explained that the year 2019 was particularly positive for the price of gold. The new central bank policy, and specifically the policy that the US central bank will follow, is good, as it returned to cutting interest rates after the four increases in 2018. By the summer, the price of gold had returned to $ 1,500.

Since the beginning of September, the price has dropped to around $ 1,450 again. It is reported that the expectations of the year 2020 regarding the price of gold continue to fluctuate, just as they have happened in recent years.