The Covid crisis pushes banks to print money, with a weak dollar the gold price rises to the highs of the last 8 years. If uncertainty continues in the medium to long term, the forecasts for gold indicate a new bull run.
Price of gold at the highs of the last 8 years: the precious metal is close to $ 1,800 an ounce, supported by the trend of the covid pandemic which continues to frighten the markets. The last time the gold price was negotiated at this level was in November 2011 (in the midst of the European debt crisis), the highest historical level is instead of $ 1,921.07.
Why gold price go up in 2020: Covid crisis, dollar weakness, central banks
Among the factors that supported the rise in the price of gold, the new lockdown in Australia: six weeks in the entire metropolitan area of Melbourne and that of Mitchell Shire starting from 8 July, following the increase in cases of coronavirus infection.
Another reason that pushes gold prices up in recent weeks (late June-early July) is the weakness of the dollar combined with investors’ mood of a risk aversion.
The data also show that the demand for physical gold is increasing because central banks around the world are increasing gold reserves.
Gold price forecast second half 2020
In the medium to long term, if the crisis and uncertainty continues and the world’s central banks continue to print money, the bulls could target the peak level of $ 1,921.07.
The price of gold is close to its all-time high, if it were to exceed the psychological threshold of $ 1,800 per ounce there is the probability of a much higher price hike.