Gold poised for new gains as global markets brace for turmoil. A slowing global economy, stock market turmoil, delays to interest rate rises and potential U.S. dollar weakness are expected to boost average annual gold prices to their highest since 2013.
Gold will average $1,322 an ounce this year and $1,369 in 2020, the median forecasts returned by the poll of 34 analysts and traders showed. The forecasts were higher than those from a similar poll three months ago.
Gold is traditionally seen as a safe place to invest during times of uncertainty, as it tends to retain its value while other assets slide.
“We expect falling risk appetite and a surge in safe-haven demand to be the key factor driving both gold and silver prices,” said Capital Economics analyst Ross Strachan.
Higher interest rates are bad for gold because they raise bond yields, making non-yielding bullion less attractive to investors.
A Reuters poll of 70 currency strategists showed they expected the U.S. dollar, which in April reached its strongest in almost two years, to slip over the coming year.
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