Goldman Sachs Bank expects gold prices to drop from $ 2000 to $ 1,300, and Bank of America expects gold to reach $ 1,300.
What is new now, about 3 days ago, experts from Citibank said that they expect gold prices to reach $ 1,300 in the third quarter of 2020 and to reach levels of $ 1,300 within 6 to 12 months, which is the lowest price for gold in global markets, and the decline continues until the end of the year.
And they completely ruled out that gold would reach the levels of $ 1,300, contrary to what Bank of America had expected.
They justified their expectations that one of the most important reasons for the rise in gold is the drop in the price of the US dollar, the Corona crisis and the Corona vaccine, and that this decrease in the dollar will not last long. Bank.
First, the main reasons for gold's decline last Friday are unemployment in America, which showed a decrease in unemployment rates from 11.1% in June to 10.2% in July, and also came in the data, adding 1.763 million non-agricultural jobs, which is higher than expectations, which were about 1.60 million jobs ..
Of course, the data is good for the US economy. Unemployment means jobs are increasing, which means that there is a recovery and movement in the economy. Therefore, this will affect the increase in the demand for the dollar. The dollar is more expensive and the dollar means its price increases, because gold is falling in price ..
This is the main reason for the drop in the price of gold on Friday. As for the topic that Russian President Vladimir Putin announced today the registration of the Russian vaccine as the first Corona vaccine, in my opinion, it will have a great impact on gold .. because it is just a registration and until the moment the distribution of the vaccine has not been announced to countries until the World Health Organization It also did not confirm this .. Therefore, the main reason for the decline in gold continues, which is the Corona pandemic crisis.
And the decline in the price of gold in the Kingdom of Saudi Arabia continues to be a consequence of the decline in global prices, and the decline continues in the coming days, prompting traders to get rid of the quantities stored and currently offered in consequence of the continuous decline.