- Gold Prices has increased sharply across the globe amid imminent risks in the Global Economy
- Bank of America forecasts Gold Prices to rise by 75% till end of 2021
- Low Interest Rates, Weak Currencies and High Risks makes Gold attractive Investment
The largest bank in USA, Bank of America has state that it forecasts Gold Prices to reach up to $3,000 an ounce by October-2021, highlighting Gold as “the ultimate store of value” amid the severe economic recession across the globe.
After persistent rise in its price during the year, Gold sits near its highest level in eight years, but Bank of America states that easing economic policies and lower Interest Rates around the world will send Gold Value up to 75% higher than its current value.
Changes in Gold Prices are impacted by Economic Conditions across the globe. With economic recession just around the corner, Global Currencies including Dollar and Pound Sterling are becoming weak. This is expected to increase Investors interest in Gold.
Ali Sultan, an Independent Economist specializing in Emerging Economies told The Mint PK, “Economic Recession is expected at Extraordinary scale which will bring even more uncertainty. In this scenario, Gold remains a Safe Haven for Investors looking to preserve their Capital”.
Bank of America believes that Gold is still in Buying Range despite its high price as they anticipate more Investment is expected in Gold.
Gold Prices closed at Rs.104,000/Tola in Pakistan on Thursday, the highest-level country has ever seen. If Bank of America forecast is to be taken seriously, Gold may reach up to Rs. 180,000/Tola by October-2021.
However, Risks persist which can bring Gold Prices down. A stronger US Dollar, Lower demand of Gold Jewelry from China and India are expected to keep the Gold Prices in Check.