Friday 10 July 2020
Cairo – agencies:
Goldman Sachs expected gold to benefit if China, the world’s largest buyer of precious metal in the retail sector, recovered at a much stronger rate than a second wave of Covid-19 injuries compared to the United States, and confirmed the target price of gold of $ 2,000 an ounce.
The bank recommended maintaining credit positions in copper, silver, steel and gold minerals which are “less exposed to new outbreak areas, Asia and Europe versus the Americas, and less exposed in the case of outbreaks”.
The total number of new cases of coronavirus in the United States exceeded three million, according to a Reuters survey, while the country announced more than 60,500 new cases, a record for a day.
The increase in buying in safe havens has pushed the spot prices of gold up 18% since the beginning of this year, and gold has surpassed the important level of $ 1,800 an ounce this week, the highest level since September 2011.
Looking to the future, the bank expects prices to average $ 1740 in 2020 and $ 1988 an ounce next year, adding that high inflation and a weak dollar are among the main factors supporting prices.
In a note dated July 9, 2020, the bank said that silver is also “approaching an ideal environment” to finally do well, based on engines including the recovery of China-led industrial activities, safe haven purchases and low supplies due to mining disturbances related to Covid-19 in the Americas.
The bank also recommended establishing credit positions in Brent crude futures and maintaining debt positions in American crude, explaining that “the basic factors of the United States provide opposite elements for WTI”.