Bloomberg Intelligence experts believe gold has entered a new bull market. Initial resistance on the way up is seen at $ 1,700 an ounce.
In US dollars, the gold price ended 2019 at its highest level in six years and at the same time reached new highs in other currencies, especially in euros. Bloomberg Intelligence believes it is only a matter of time before gold hits new highs in US dollars. At $ 1,400 an ounce, experts see good support in the early 2020s as it has lasted for five years. The 2013 high of around $ 1,700 an ounce of gold is considered the first resistance.
Above all, the rising volatility of the stock markets and a weaker US dollar see the experts as price drivers for gold for the next decade. According to Bloomberg Intelligence, it is unlikely that volatility will remain at the current low level in the next few years, from which gold will benefit. The dollar is also “unlikely” to continue to rise at a similar pace to what it has been doing since 2014.
The gold price has been gaining strength since the US Federal Reserve raised interest rates in December 2015 and it would take “good reason” to end this trend, the analysts continued. Low prospects of continued dollar strength and minimal stock market volatility lead Bloomberg Intelligence to view gold’s outlook as positive. In contrast, most other commodities are still trapped in bear markets.