Analysts of the American bank Wells Fargo believe that the price of gold has a good chance of showing an increase of 7% in the near future, despite the recovery in the stock market after a short correction.
"We assume that the price of gold will show more growth before the end of the current 2018, even despite the simultaneous growth of stocks," said John LaForge from the investment bank Wells Fargo. According to the analyst’s forecast, in the next 12 months the cost of the precious metal will rise to mark $ 1,300 per ounce, that is, at 7% of current quotes. It is reported by Kitco News agency, citing a review of the bank.
Due to the correction in the stock markets, the price of gold could show an increase of 2% in October of the current 2018. At that moment, many investors used gold as a defensive asset to wait out a hectic period in the stock market, which showed a drop in prices. “The fact is that physical precious metals are always valued by investors because of their material tangibility, unlike stock returns, which can disappear as quickly as it appeared at any time,” LaForge said.
In a review of the bank, he also wrote that growth in the gold market would not be short-term. The recovery of the stock market does not mean that the cost of the precious metal should necessarily decrease. Many factors indicate a continued rise in gold prices. In the next 2019, the maximum value of the yellow precious metal can reach $ 1,350 per ounce.