The French international bank, BNP Paribas says that it can see gold reaching $1600 in 2020 as a result of the easing cycle being implemented by the Federal Reserve – with just a few months of 2019 left, this means now is the time to buy gold if you haven’t already invested.
The bank’s investment team revised up its gold price forecasts for next year with head of commodity research, Harry Tchilinguirian saying they expect gold to peak above $1600 as early as Q1 2020. This makes now an opportune moment to get in on gold investment.
He said, “We expect four 25bp rate cuts between September 2019 and June 2020. As real rates move into negative territory in response, we expect gold to rise significantly. Safe haven demand has risen and is likely to grow further with rising expectations of economic deceleration given the state of play of US-China trade tensions. The trade war is unlikely to be resolved quickly.”