Prospects for investment in gold in 2020

More and more investors are focusing their attention on the gold market these times. One of the main reasons for such activisation is the fact of lowering of the global interest rates. We must not forget about the trade conflict between the United States and China, where China has not achieved a reduction in duties on their goods.

What is the current situation in the market?

The price of gold over the past 2019 has risen by about 20–23%. The big jump occurred in the summer where only in August the price grew by 7%. Today is 15:50 (MEZ) the price per ounce has reached 1550.1 USD. The last time we saw this in 2013 after a sharp fall in 2011, when the price of precious metals reached almost 1850 USD per ounce.

What can we observe in 2020?

Speaking about the prospects, gold remains a strong commodity in the current market. According to Jester Law who is a trader in the gold market the price of gold in 2020 will grow by at least 15%. The goal of the current market is to hit a mark of 1774 USD per ounce.

As was mentioned at the beginning, it is impossible not to take into account the conflict between the United States and China, which can cause gold to rise and reach the level of 1600 USD per ounce.

Is it worth of entering the gold trading market today?

Precious metals lose much due to the popularity in the market. Despite its popularization, it is easier to invest in government securities where one can get guaranteed profits rather than to risk with fluctuations in gold prices. Metals are considered to be long-term investments to minimize the risks of investments. Those who understand this market can choose the right time to buy and sell an asset. But this strategy is not suitable for most private investors who do not monitor the situation and factors affecting the price of the metals.

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