Analysts Ronald Stoeferle and Mark J. Valek from Incrementum AG spoke about the situation in the market of precious metals in the annual review “In Gold We Trust”. In their review, they pointed to the drivers that would affect the growth of the cost of the yellow precious metal.
Ronald Stoeferle believes that now we are witnessing changes in the monetary policy of Central Banks, which in turn will have an impact on us dollar. Changes in the technology sector, where gold is used, will also have an impact on the value of the precious metal.
Such developing countries as Russia, China and India are active buyers of yellow precious metals for their reserves. Their actions will gradually undermine the hegemony of us dollar as the world currency. The Central banks of these countries will continue to pursue a policy of increasing gold reserves.
Another important factor that will affect the market of precious metals is the cryptocurrency market, and in particular the blockchain technology. It does not compete with the gold market. On the contrary, the blockchain will create new projects with gold, which will attract new groups of investors to the market of precious metals.
The analyst also named a number of events that can strengthen the position of the yellow precious metal. For example, a possible recession in the US remains an underestimated danger to the country’s economy. Any recession is a supporting factor for gold. “If the price of gold is able to overcome the resistance levels of 1360-1380 dollars per ounce, then there will be a dynamics of further growth, as it was in the case of silver,” – so the analyst believes.