Banking giant Bank of America made a record estimate for gold.
According to the estimates of Bank of America, gold will gain 80 percent value in 18 months and will increase to 3 thousand dollars per ounce.
Everyone has a reason to love gold. Some love gold to avoid the risk of inflation. Others choose this as protection against increased uncertainty. Others want to have gold if they have to flee their country at midnight – even if it seems a bit excessive.
Fed Cannot Print Gold
The last run of gold began at the end of September 2018, when precious metal was traded at $ 1,465.70. Since then, he has made an increase of 15 percent to $ 1,689.60, and if Michael Widmer and his team from Bank of America are right, precious metal is getting higher. For this reason, “Fed cannot print gold” expressions are used.
Widmer expects rates to be very low in the US and the rest of the world as central banks try to increase GDP growth and inflation. According to the team, governments are spending more than ever to reduce coronavirus effects. This will cause budget deficits and growth of debt levels. Therefore, gold is more attractive in this period.
“Investment demand has shown a strong correlation with gold prices in recent years and we expect this group of buyers to fully raise their gold prices.”
A Strong Rise
For exactly these reasons, gold is expected to experience a strong rise until October 2021. Banking America, the banking giant, says gold can rise to $ 3,000 within 18 months.