Gold Price News and Forecast: XAU/USD to hit $1900 by end-2020
|Gold: Well-defined battle lines point to range play around $1800
Gold nurses losses around the $1800 following Thursday’s good two-way businesses. The risk-off theme amid coronavirus concerns continues to bode well for the US dollar. Therefore, let's take a look at how the yellow metal is positioned from a technical perspective.
The Technical Confluences Indicator shows that the buyers remain hopeful as long as the bright metal holds above the powerful support aligned at $1795, which the confluence of the pivot point one-day S1, SMA5 one-day and SMA100 one-hour.
Gold: To hit $1900 by end-2020, five key reasons
Analysts at ABN Amro have revised up their gold price-forecasts for 2020 and 2021, citing the following five key reasons.
“1. Central bank policy is a strong driver behind higher gold prices.
Official rates ... In a large number of countries … will unlikely go up in our forecast horizon and quantitative easing
2. Number of countries ... Negative rates.
Gold is not paying any interest rates. So negative rates are another major support to gold prices especially versus the euro.
3. The us may not have negative official rates or government bond yields, but nominal rates corrected for inflation expectations (real rates) are in negative territory.
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