According to the analyst, investors should expect the correction to continue. For example, precious metals can drop to $ 1890, and silver to $ 22 per ounce. But then new price records await them.
Melek substantiated his point of view with the following facts: “Real interest rates are showing growth, and investors are again showing an interest in risk. Against this background, the US dollar began to strengthen. The American economy is responding positively to the additional trillion dollar bailout package from the Federal Reserve. The dollar will probably still have good days this year. Private investors will fix profits on the gold market, plus an increase in the collateral for gold contracts on the COMEX exchange may lead to a further decline in prices for precious metals. "
Before gold starts to rally to new highs, the following must happen:
1) the Fed reduces the yield on government bonds;
2) the Fed has outlined target inflation;
3) Rising inflation in the United States.
TD Securities predicts an average price of $ 2,100 for gold in the fourth quarter of 2021 and $ 30 for silver per ounce.