The price of Gold continues to grow, on Thursday the quotes reached the level of $1827 per ounce.
The value of the asset rose to a monthly peak after Fed Chairman Jerome Powell assured that the regulator is not in a hurry to tighten policy. On Wednesday, Powell was of the opinion that the current price increase is temporary, and the Fed expects to continue buying bonds until there is significant further progress on new jobs. At the same time, interest rates will remain close to zero, at least until 2023.
Analysts of the investment company BMO Capital Markets believe that the precious metals market will survive the current 2021 well. The price forecast for this period remained unchanged. The average cost of the asset at the end of this year will be $ 1,815 per ounce. But then gold and silver may come under pressure. The precious metals market is closely monitoring the possible tightening of the US Federal Reserve policy, but there will be steady support from the demand for gold and silver, which will come from Central banks and ETF funds over the next months. Currently, we are seeing a recovery in the global economy, so the attention of the markets is shifting towards Central Banks, especially the decisions of the American regulator are of great importance. This will certainly have an impact on the positioning of Gold, but given the negative real profitability, increased geopolitical tensions and high market volatility, it is unlikely that an aggressive capital outflow from the precious metals market will occur in 2021-22.
The forecast expects a further increase in the price of Gold to the levels of 1830, 1835 and 1840 Dollars per ounce.