19.08.201913:29 Forex Analysis & Reviews: Golden peaks: precious metal could approach $1700

According to the calculations of specialists of the Swiss bank UBS, the price of gold can rise by more than 10% to $1,680 per 1 ounce in the next 18 months. The precious metal will be supported by such factors as a recession in the global economy, trade contradictions between countries and a number of geopolitical risks.

According to the observations of bank analysts, an important role in the growth of prices for the yellow metal is played by the decline in the yield of other assets. In a situation of instability in the financial markets, when it is difficult to predict further price dynamics, investors are under pressure. This forces market participants to invest heavily in safe assets, primarily in gold. UBS calls this behavior optimal and strategically correct, emphasizing that owning gold in such a situation is very beneficial.

Recall that recently the cost of yellow metal reached $1,520 per 1 ounce. According to the forecast of the Swiss bank, it can grow by 10% and amount to $ 1,680 per 1 ounce next year. According to experts of the financial institution, a catalyst for the growth of "gold" prices will be increased uncertainty in the global economy.

Active interest among investors is caused by stocks of ETF-funds specializing in gold, as well as futures on precious metals. Recently, the volume of investments in these investment assets is breaking records. According to most analysts, the yellow metal has impressive potential to attract new investors.

According to UBS experts, in 2020, the average price of gold will be $1,550 per 1 troy ounce. This is above the previous expectations of experts' forecast of $1,450 per ounce. The UBS is confident in the high potential of the precious metal and its ability to rise to almost $ 1,700 per 1 troy ounce.