The Fortune 500 financial services company, INTL FCStone says gold will continue to gain in 2020/2021. The firm’s annual commodity report makes a compelling case to buy now, with experts predicting a rosy 24 months for the precious metal. The head of market analysis for EMEA and Asia, Rhona O’Connell cites the weakening US dollar, simmering global tensions and negative interest rates in the Eurozone are all favouring gold and giving it the upper hand over other investment and asset classes as 2020 unfolds.
She says, “The prognosis is for further gains … The European Central Bank has limited options available to it and it is highly unlikely that European interest rates as a body will move back above zero this year … This is likely to sustain private investor interest in gold as it obviates the argument about gold not generating a yield.
“After more than a year of grinding economic uncertainty, prompted in large measure by the vicissitudes of the Sino-U.S. trade disputes, we are now looking for a modest rebound. The bulls will have the upper hand this year.”
The outlook says the geopolitical tensions playing out on the world stage aren’t expected to go away – which, as we have seen during the US-China trade war and Iran escalation favours a new gold bull run. Buy now to extract maximum benefit.