The Gold price finally managed to break away from the strong support level of $1800 and reached the 1810 mark. According to Credit Suisse, it may be only a matter of time before the asset price returns to the level of $1,900 per ounce and further to its record high in 2020. Currently, the price of gold is struggling to stay in the range of 1800 per ounce, as the precious metal does not benefit from the new lows of real interest rates.
Credit Suisse commodity market analysts note that the real yield of government bonds is now lower than last year, when gold was trading at about $2,000 per ounce. The low real yield is due to the growing demand for government bonds amid fears of the impact of a new strain of coronavirus on US economic growth. The bank expects that the price of gold will remain at the level of $2,000 per ounce until the end of 2021. According to analysts at Credit Suisse, the risks of monetary policy will be unresponsive, and the adaptive policy will continue for some time. In order for gold to be able to break out, there must be some negative factor, which right now is manifested only in the low yield of US government bonds. Weaker economic indicators of the US economy will also lead to higher prices.
In our forecast, we assume a further increase in the price of Gold to the levels of 1815, 1820 and 1825 dollars per ounce.