As market wisdom states, gold is an excellent choice for long-term investments. Despite the fact that some experts assume gold has already reached its peak, there is every reason to believe that it is just the beginning.
The great majority of market players are sure that just in a few years, the price of gold may increase at least twice to $4,000 per ounce. Opponents of these rosy forecasts suggest not jumping to conclusions. They think that the dazzling rally of gold will soon slow down. They argue that gold is rising largely amid coronavirus woes. However, if virologists develop a safe and effective COVID-19 vaccine, gold will lose its luster for investors. What is more, gold may weaken considerably due to the US presidential election. Third Bridge Group, a US-based research provider, states "gold prices may sink below $1,600 after the US election." However, gold will resume its rally next year. At the same time when the development of a vaccine is sure to be a bearish factor for gold, the upcoming election appears to be a wild card. Economists assume that the presidential election may either slow down or boost its growth, depending on the result. For instance, after the victory of Donald Trump over Hillary Clinton in 2016, investors bought up safe-haven assets. Therefore, gold rose by 5%.
For the time being, gold is sure to extend gains amid uncertainty in the market. Besides, gold now looks like one of the most reliable and lucrative safe-haven assets.
