Gold in 2020: Prices to climb to $1,600 in 12 months after correction - ABN Amro

(Kitco News) Gold is heading higher next year, but investors should wait until the current correction is over before jumping in, according to one Dutch bank.

ABN Amro’s 2020 gold forecast sees gold starting next year at $1,450, then heading to $1,500 in Q2, followed by a rise to $1,550 by the end of Q3, and then $1,600 by the end of Q4.

“For 2020 we are more optimistic for gold prices if a considerable amount of long positions has been closed. Our year-end 2020 gold price forecast remains at USD 1,600 per ounce,” wrote the bank’s precious metals strategist Georgette Boele. “[We are] positive on gold but wait for the correction to jump in.”

In the short-term, ABN Amro expects gold prices to retreat a bit further, which is why it is not advisable to buy at this point.

“Even though the longer-term dynamics remain supportive for gold prices, such as central bank monetary policy easing, more negative yielding government bonds and some downward pressure on the dollar, in the near-term we expect more gold price weakness,” Boele said.

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