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3 Jan, 2020 07:23

Deuces wild: Gold on path to reach $2000 per ounce in 2020

Deuces wild: Gold on path to reach $2000 per ounce in 2020

Gold prices can spike further this year, beating the highs they reached in 2019, with market analyst Fawad Razaqzada expecting the precious metal to hit $2,000 an ounce.

Bullion prices continued to reach higher during the last trading day of 2019, with gold for February delivery up around 0.5 percent, trading above $1,525. The yellow metal touched its highest level since September, when it stood at around $1,540 an ounce.

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“I think gold has everything going for it in 2020,” Razaqzada told Kitco News, adding that even if bullion misses the forecast price, it is still set to rise in the new year.

“Gold’s technical outlook remains bullish given that breakout in the summer from a 6-year-old consolidation at $1,350 and the subsequent bullish consolidation we have seen in recent months,” he noted. “So long as gold holds the breakout above $1350, the long-term technical bias would remain bullish.”

Meanwhile, MarketWatch columnist Mark Hulbert has predicted that this year gold price is set to rise more than $100 per ounce or 6.9 percent. However, he doubts that it will hit any records given the historical precedents, inflation expectations, and gold-timer sentiment.

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“Those who are hoping gold will rise in 2020 to new all-time highs will be disappointed by an average year, of course. That’s because gold would have to rise by 30% from current levels to make it to a new all-time high,” he wrote. However, Hulbert notes that the precious metal would still be a smart bet next year.

Central banks across the globe have been boosting their gold holdings, by both repatriating and purchasing the metal, in attempt to diversify their national reserves amid geopolitical risks. Russia and China have been one of the champions in this trend, adding 34.9 tons and 21.8 tons to their stockpiles in the third quarter, according to the World Gold Council (WGC).

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