Gold reaching new high

The gold price continues to be strong. If yesterday it looked like gold was about to consolidate, buyers came back immediately and reduced the minus significantly towards the end of trading. A study by one of the largest US banks is currently causing a sensation. The analysts put the study under the motto “The Fed cannot print gold”. The target price is a clear announcement. It is well known that gold bugs sometimes throw very high target prices for the gold price. But analysts are mostly rather conservative here. $ 100 above or below the current level is normal, with $ 200 is already considered a revolutionary analyst. All the more remarkable is the price target that Bank of America, after all the second largest bank in the United States, has now spent on the gold price: the gold price is expected to rise to $ 3,000 in the next 18 months.

 

Falling demand in Asia

The analysts still see headwinds for the gold price: Among other things, the US dollar, the falling demand for jewelry in Asia or a significantly reduced volatility on the financial markets. But all of this will be pushed into the background by the returning financial repression. Interest rates in the US and other industrialized nations would remain near or even below zero for the foreseeable future. And central banks are likely to be busy boosting inflation. The central bank could print enough money – but not gold. That’s why the analysts are raising their price target to $ 3,000.