The Macquari Investment Group for Financial and Investment Services expected that the demand for safe haven will lead to the high price of an ounce of a record level at 3500 dollars during the third quarter.
Analysts led by Marcus Garvi said in a memorandum that the average price of alloys may reach $ 3150 an ounce during that period, adding that the precious metal – which was trading at about $ 294.50 an ounce in the latest trading – will receive more support from concerns about the growing American budget deficit.
Reasons for height
The price of alloys increased by 12% this year, driven by the uncertainty about the geopolitical conditions and the policies of US President Donald Trump related to customs duties, and the deteriorating US budget forecast indicates the possibility of high inflation, which may benefit gold as a hedge tool, according to Macari.
“We see the strength of the gold price so far, and our expectations for the continuation of these forces are primarily due to the desire of investors and official institutions to bear the costs of low credit risk or the risk of the opposite party,” the analysts said.
They added that there is a “wide field” in front of the traded indicators supported by alloys to increase their possessions, noting that gold will find additional support from the jewelry, alloys, currencies and technology market that have withstood despite the high prices.
And last month, the Goldman Sachs group raised its expectation of the price of gold by the end of the year to 3100 dollars an ounce, while “City Group” expected earlier in February that prices would reach $ 3,000 an ounce within 3 months.
