Bank of America Corp. (BofA) raised the 18-month gold target price at $ 3,000 an ounce, which implies an increase of More than 50% compared to the current record, in his report entitled “The Fed can’t print gold” or what would be in Spanish “The Fed cannot print gold”.
The analysts, among which are Michael Widmer, raised the target from $ 2,000 previously, as monetary policy makers around the world introduce large amounts of fiscal stimulus and monetary to shore up the economies affected by the coronavirus.
“As economic output shrinks, fiscal outlays increase, and central bank balance sheets double, fiat currencies could come under pressure,” the report said. “Investors will look for gold.”
Bank of America (known by its initials BofA) expects that the metal yellow trade at an average of $ 1,695 an ounce this year and of $ 2,063 in 2021.
The record US $ 1,921.17 it was established in September 2011.
Spot prices were trading at around US $ 1,680 this Tuesday and have appreciated 11% so far this year.
“Without a doubt, a strong dollar, a lower volatility in the financial market and one Falling demand for jewelry in India and China could continue to be headwinds for the yellow metalBofA said.
“But beyond the traditional foundations of gold supply and demand, financial repression has returned to an extraordinary scale,” the report said.
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