Gold is predicted to average more than $1,500 an ounce in 2020, according to a recent Reuters poll, up from the $1,393 it averaged last year.
According to a precious metals price poll conducted by Reuters and shared on Refinitiv’s Eikon platform, analysts predict gold will average $1,520 in the first quarter, $1,542 in the second quarter and $1,551 for the full year.
Reuters conducts its poll every quarter, combining predictions from two dozen or more analysts. It represents an average, rather than the actual price gold hits at any point during the day.
The gold price rose dramatically in the second half of 2019, jumping from an average of $1,283.95 in May to $1,498.80 in August.
It hovered somewhere around the $1,500 mark for the rest of the year, finishing with an average price of $1,476.04 in December, according to Kitco.
The gold price rose for several reasons last year, said Johann Wiebe, a lead metals analyst on the GFMS team at Refinitiv.
Negative bond yields encouraged an appetite for gold as an investment, he said.
Also impacting the gold price was general uncertainty in the U.S. economy stemming from macroeconomic developments, like the trade dispute between the United States and China.
To date in 2020, the price of gold has hit its highest level in seven years, peaking at $1,671.65 on Feb. 24.
While it’s come down slightly since then, the metal’s price is expected to remain elevated throughout the year.
Wiebe said concerns around coronavirus will keep gold prices aloft, adding that the spread of the disease has sparked discussion about “wide macroeconomic implications.”
Automobile sales in China, for example, have plunged in the past couple of months.
The disease will have ramifications on global economic growth, and the gold price will remain elevated because of that, Wiebe said.
The current correction in the stock market also is keeping gold prices high.
Ultimately, though, he said once a vaccine is found and restrictions on travel and public gatherings are lifted, the gold price is likely to drop considerably.
Platinum and palladium predictions
Platinum is predicted to remain significantly less expensive than gold this year, with the Reuters poll showing the white metal will average $938 an ounce in the first quarter, $962 in the second quarter and $979 for the year.