Will Gold Reach $5000 An Ounce Someday?
Will gold reach $5000 an ounce? It will become an interesting question to discuss. Amid of Covid 19 pandemic, the price of gold is increasing. Some factors cause the inflation of gold prices. Many things have changed to be a consequence supporting the US and China and Brexit. Those influences the price of gold.
The Increase of Gold Price
Gold has increased to be 6.5% since the decision of Brexit was final. Gold prices usually increase every day. The result of the study has predicted that the gold price is increasing at least 260% on $5.000 per ounce in 2020-2021. The prediction is fairly sensational and brave in which it only has three big catalysts helping to increase the price of gold at $5.000 per ounce in three last year.
Fragile Global Economy
It seems to be one of the main factors causing the price of gold to increase. Will gold reach $5000 an ounce? It becomes a main topic of the discussion. When the global economy faces a crisis, the price of gold is always promising. The uncertainty of the economy due to Brexit and Coronavirus will continue for a temporary time. It helps the price of gold higher. Many investors have claimed a good question about the next country stepping out from the European Union since the British left out. It has a discussion in which European Union will be assembled in the upcoming years. The uncertainty of geopolitics will make investors take a choice in investing in gold.
Cutting Process of Interest
It is a great fact of being a causing factor of the high gold price. The cutting process of interest decreases the value of a particular currency. When the currency is down, the price of gold tends to be more interesting to save the great value. It has reduced the interest rate up to -0.4%. It has an indication of the further interest rates in which it is influencing the price of gold. And it has some issues about the interest rates since Great Britain left out of Uni Europe. The cutting process of interest will help to increase the price of gold higher in 2020 and 2021.
Discounts in Gold Trading
The next important factor to make gold price higher is the chance of gold trading with a discount price. It is clear that the traded gold with a huge discount regarding the ratio of dow or gold. The ratio of dow or gold is gained by dividing the index of dow with the price of gold. When the ratio is smooth, it reaches 13.3. It is real proof that the traded gold with a great discount can influence the gold price itself. The gold will be at a higher premium in upcoming years. The gold requests will increase in Asian countries in the upcoming years. Of course, it causes the price of gold to reach $5.000 in 2020-2021.
Will Gold Reach 5000 an Ounce?
Those are great predictions to the change of the gold price. Will gold reach $5000 per ounce? Of course, it will when some factors meet it. You can invest in gold to gain and earn more profits. The gold investment will never make you lose.