If the rally in gold prices in 2019 is anything to go by, the metal is set to hit a new all-time high of $2,000 an ounce in 2020.
This is the opinion of analysts after gold breached the $1,500-an-ounce psychological level.
Seen as a safe-haven asset for fearful investors, gold is expected to gain value from a combination of economic and geopolitical events that could weaken the dollar.
Gold rose to seven-year highs of around $1,611 an ounce in the second week of January as tensions between the U.S. and Iran reached their highest point following the U.S. killing of the Iranian general Qassem Soleimani and Iran’s missile attack near U.S. troops in Iraq.
The U.S.-China trade war escalation, recession fears, and a dovish Fed pushed gold prices up in 2019.
Fawad Razaqzada, a technical analyst at City Index, told Kitco.com that he expected gold prices to push to $2,000 an ounce as a result of global coordination among central banks to loosen monetary policy this year.
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More loose monetary policy will push bond yields further into negative territory, thereby “boosting the appeal of noninterest-bearing precious metals,” Razaqzada said.
“I think gold has everything going for it in 2020,” he added. “So long as gold holds the breakout above $1,350, the long-term technical bias would remain bullish.”
If the yellow metal breaches the $2,000 ceiling it would beat the record high of $1,917.90 an ounce reached on Aug. 23, 2011, and another intraday high of $1923.70 on Sept. 6, 2011, according to Wallstreet on Parade.
