According to the bank’s analysts, three problems have now been implemented simultaneously: the growth of the dollar, the margin call in the stock market and the expectation of low inflation. “The last time a similar situation was observed in 2008. Then the price of gold decreased by -30%,” this is stated in the review of the investment bank.
“The repetition of 2008 could bring the price of gold to around $ 1,200 per ounce. Nothing can be ruled out. But such a scenario is unlikely. In general, the bank is optimistic about the future prospects of the yellow precious metal. A factor in pressure on gold could be an increase in real profitability for other assets, caused by lower oil prices and panic due to the spread of the coronavirus, ”analysts in the Australian bank said.