The investment bank B. Riley FBR has made a strong revision to its price predictions for gold in light of the continuing coronavirus pandemic and now expects to see the precious metal trading solidly at $2500 as early as this summer.
The bank’s analysts expect that gold will hold those prices through the end of the year. In its briefing, it said, “Due to our conviction in rising gold prices, we are meaningfully raising our gold price deck … to $2,500/oz in 3Q20 … and we feel compelled to align our 12-month price targets to this view.
Regardless of how much longer recession conditions will continue and how much further general equity markets might retreat, extreme monetary and fiscal stimulus policies being enacted on a global basis will have repercussions. These repercussions will likely parallel 2009-2011, and drive gold price to new highs.
“We believe the current macro environment has been primed to drive gold prices to the $2,500/oz level. During such a gold price ascent, gold will be the best performing asset class, and gold related equities will be the best performing equity sector.”
If you’ve been considering investing in gold, buy now to have your investment in place ahead of the expected bull run.