Gold prices on August 16 declined after height at the end of last week. Against the background of strengthening the dollar and restore the economy from the effects of a pandemic analytics of the Financial Holding of UBS Global Wealth Management, called investors to review the investments in the precious metals, writes Bloomberg.
At the beginning of the year, gold was traded at $ 1900 per ounce. On August 16, the cost was about 1770 dollars, and UBS analysts predict the collapse of up to $ 1600. Also, according to their estimates, silver from about $ 24 will fall to $ 22, and platinum will become the most profitable for investments – it is widely used in production.
Investment director in UBS Global Wealth Management Dominic Schnider advised the owners of gold assets or get rid of them at all, or take measures to limit risks. However, there are more optimistic estimates. For example, the Goldman Sachs Investment Bank expects that by the end of the year the ounce of gold will cost in the area of two thousand dollars, and silver will reach 30 dollars.
This week a meeting of the Federal Reserve System will be held, where the head of the regulator Jerome Powell will be. Then investors will be able to better analyze the possible risks associated with the storage of precious metals. Gold, the cost of which is estimated in dollars, may be cheaper with the increase in the cost of the American currency, since then the metal is becoming more expensive in other currencies, which leads to a decrease in demand and as a result – prices. Last week, the price of the precious metallol was already descended due to improving the situation in the labor market in the United States and strengthening the American currency.
In May 2021, analysts, on the contrary, predicted an increase in gold prices. Investments in the precious metal should have become beneficial on the background of growing inflation.