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Gold Price is Likely to hit up to $2,000 per Ounce in 2020

Dec 5, 2019 | Gold

The future price of gold bullion can range anywhere from $1 to over $2,000 per ounce. Current expectations from market experts indicate the year 2020 may prove to be very bullish, for a wide variety of reasons. As such, a potential price point of over $1,400 seems highly plausible. 

The Next Gold Price Phase Looms Ahead

Those who spend a lot of time watching at financial charts will have noticed nearly all markets tend to showcase the same patterns over and over again. As far as the gold price is concerned, those cycles are also apparent, albeit they are not necessarily all that common. Since 1969, there have been periods of 7 to 8 years during which nothing exciting happened in the slightest. 

The previous gold price surge occurred between 2001 and 2012, when the value per troy ounce hit just over $1,550. That price point has not been sustained ever since, as prices have continued to decline in the past few years. Despite some minor surges here and there, not too many traders expected a push to $1,300 to occur again this year. 

Keeping the current gold market trend in mind, it would appear the year 2020 is up for another bullish surge. It has been roughly 7.5 years since the previous 11-year high has been noted globally. If history will indeed keep repeating itself, next year may see another strong push to well over $14,00 per troy ounce. That would certainly be an interesting turn of events, although there is a chance the gold price may go well past that point.

The Reuters Poll Agrees

A recent poll conducted by Reuters seems to confirm 2020 will be the year to watch for gold bugs. It is expected the current global financial turmoil will push investors to alternative stores of value, such as gold, silver, and other precious metals. Furthermore, central banks are expected to keep buying more gold to beef up their reserves in the coming months. In doing so, they will play a crucial role in keeping the gold price at their current levels or even push them over the $1,400 threshold.

Citi Analysts Expect $2,000 an Ounce

As is usually the case in the financial sector, there are those who have far higher expectations compared to anyone else. Analysts at Citi, who wouldn’t necessarily benefit from a gold price surge, are incredibly bullish. These analysts expect gold to go through a very “strong trading phase” in 2020. That trading action can push prices as high as $2,000 per ounce.  It is possible this price action will be delayed until 2021, but next year should prove to be very interesting, in their opinion. 

Similar to the majority of experts, Citi analysts see a new “cycle” ahead for gold bullion. As the market is seemingly prone to repeating itself once again, the upward momentum is almost guaranteed. Given the current banking climate regarding interest rates, recession, and geopolitical spats, it is not surprising to see investors flock to alternatives. Gold has always been a relatively safe store of value during times of financial instability. 

Current gold futures prices may not necessarily agree with this sentiment. Despite noting nearly constant growth of over 12 months, the futures prices have begun slipping ever so slightly in Q3  2019. It is not necessarily a sign of what is yet to come, but it could skew expectations somewhat. 

Images courtesy of their respective sources.

Fintoism is not providing financial or investment advice. All content published on this platform is for entertainment and educational purposes only.

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<a href="https://fintoism.com/author/oglock/" target="_self">JP Buntinx</a>

JP Buntinx

JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.

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