The Swiss bank UBS believes that precious metal quotes will jump to $1,900 per ounce by 2024, and the British consulting company Capital Economics shows a mark of $1,700 per ounce. Why are the numbers so different? Let's deal with the arguments.
Analysts at the Swiss bank believe the Fed will stop raising interest rates next year, and will even cut them by 1.75% by the end of the year. As you know, precious metal rises in price by 19% with a decrease in interest rates of the US central bank by only 1%.
As for the British company, its experts also hope for a change in Fed policy, as well as a deterioration in the situation with the global economy in the middle of next year. In such conditions, the attitude towards risky assets from foreign investors will improve and the dollar will weaken. Consequently, the gold rate will rise.