14.11.201900:54 Forex Analysis & Reviews: Gold could increase to $1,700 an ounce, even if Washington and Beijing go global

It is no secret to anyone that over the past few months, the dynamics of the gold exchange rate depends on news from the "advanced" trade confrontation between the United States and China.

When it became known that the parties were ready to conclude a "peace" agreement, the yellow precious metal fell sharply in price, falling from $1,514 to $1,448 per ounce.

According to analysts, gold managed to stay within the stable range of $1,440-$1,570 only due to the fact that investors are still not completely convinced of the possibility of a truce.

However, if obvious progress is evident in the trade negotiations between Washington and Beijing, the precious metal will again come under serious pressure.

Morgan Stanley analysts believe that in the case of the signing of an interim agreement between the United States and China, as well as the cancellation of their previously introduced trade duties, gold in the first quarter of 2020 could fall in price to $1,394 per ounce.

Meanwhile, Saxo Bank analysts remain optimistic about the prospects for precious metals.

"It will take quite a while before the global economy recovers again and growth continues again. Therefore, gold has a good chance to become a sought-after asset for a long time while the global economy will recover," they believe.

According to the bank's forecast, next year the precious metal may grow by 10-15%, to the level of $1,700 per ounce.