The average gold price in 2020 could be $ 1,558 /oz, with the possibility of testing the $ 1,700 /oz level and moving above it later this year, according to Refintive GFMS materials.
According to GFMS experts, the general macroeconomic background will continue to support gold, and numerous political and economic uncertainties are likely to lead to increased volatility in the stock market and risk aversion.
Central banks' monetary policy will remain soft. At the same time, there is a possibility of at least one cut in the US Federal Reserve's interest rate, especially if the US economy shows new signs of stagnation.
While demand in Asian markets is likely to remain weak this year, gold purchases by central banks and renewed investor interest will support gold prices.
On Tuesday, gold prices pulled back from more than 6-year highs, and stock indices rebounded after a massive drop due to the spread of the Chinese virus. On Wednesday, the US stock market saw an increase.
Investment demand for gold in 2019 increased by 9% to 1,271.7 tons, mainly due to a strong inflow of funds in ETFs and other exchange-traded products. In particular, demand for gold bars and coins fell 20% to 870.6 tonnes, while ETF inflows totaled 401.1 tonnes, versus 76.2 tonnes in 2018.
