About the prospects for gold in 2020

For quite some time now, we have systematically recommended buying gold. The main line of our argument is to expect an increase in demand for safe-haven assets in general and gold in particular amid growing geopolitical risks, as well as the threat of a global recession or a continued slowdown in global economic growth. Another argument in favor of gold purchases is the era of ultra-low interest rates in the world, which increases the attractiveness of gold as an investment asset.

But in this review, we would like to digress somewhat from our own (possibly anticipated) position and analyze the opinions of experts from the sphere of investment and finance.

Stephen Innes, AXI Trader's Chief Asian Market Strategist.

The main driver for the rise in gold prices in 2019 was the world's lowest interest rates amid rising geopolitical risks, including Brexit and trade wars. All this led to the formation of fear of a global recession. Which in turn sent investors to the gold market.

Speaking about the prospects for gold in 2020, Innes notes that the Central Banks in the event of a further weakening of the global economy will try to further weaken the monetary policy. This will make gold even more attractive in the eyes of buyers.

Strategist AXI Trader estimates the potential for gold growth in 2020 at 10%.

Warren Patterson, Chief Trading Strategist at ING

ING revised its gold forecast for 2020, raising it from $1,500 to $1,650. Motivation - a sharp increase in geopolitical risks primarily from the Middle East. Patterson notes that, despite some easing of tension, investors are unlikely to soon forget about this situation. In addition, the ING expects the Fed to reduce rates in April, which will be an additional driver for gold growth.

Jasper Law, a gold trader with many years of experience

Luo believes that gold in 2020 will grow by 15-20%. The target of current growth is the mark of $1774.

Motivation: Hong Kong protests do not subside, China and India have serious inflation problems, which is pushing investors to invest in gold as protection against inflation risks.

Joshua Rothbart, founder of Rotbart & Co, gold and other precious metals trading company

Rothbart believes that gold can reach $ 1,620 in 2020. The main reason is the continued friction between the United States and China. He also notes the fact that a possible correction in the stock markets will definitely provoke an increase in demand for gold and, as a result, an increase in market prices.

As the head of a gold trading company, Rothbart notes that the Central Banks of Russia, China, Turkey, and Poland have been generating great demand for gold recently (in 2019, Central banks bought 12% more gold than in 2018). And the zero or negative interest rates of the Central Banks make gold an excellent alternative to more familiar to investors’ investments in government securities.

Jrearz Jerry, Head of First Asia Merchants Bullion Brokerage

Jrearz believes that the global economy and the political situation in 2020 look very unimportant. Brexit, trade wars and the crisis in the Middle East worsen the already not-so-good situation in the world.

He expects gold to finish 2020 above $ 1,500.

Summarizing, we note that experts do not always turn out to be right, and ultimately everything will be as it will. However, the case for gold purchases in 2020 seems convincing enough to take a long position in the asset. Shopping goals are ambitious but achievable, and the risks are relatively small and have a relatively small probability of implementation.