World Bank: Gold rate to $1,600 per troy ounce in 2020

Investors could expect a further increase in the price next year. Gold price expect. That's what the World Bank writes in a new report that was published on Tuesday. For the last two months, the price of the precious metal has fluctuated around $1,500 per troy ounce. This means that the price can still rise by more than 6%. According to the World Bank, the deteriorating outlook for the global economy is a stimulus at the gold rate.

"The outlook for gold prices is favourable, reflecting heightened uncertainty and weak growth prospects for the global economy. The price is supported by strong physical demand, interest rate cuts by the Federal Reserve, and increased political uncertainty. The increased demand for gold is mainly due to central bank purchases, increased inventories of gold ETFs, and jewelry sales in India."

Gold price continues to rise

Since the beginning of this year, the gold price in dollars has risen by 18%. Due to the depreciation of the euro, the price in our currency has risen even more, by more than 22%. According to the World Bank, the precious metal remains in an upward trend. The silver price is also positive, as it will rise by 4.9% next year to almost $19 per troy ounce.

Due to the slowdown in the global economy, the outlook for base metals looks less good. The World Bank expects copper prices to recover slightly after the 8% decline this year, while the average price of all base metals will fall by 1.4%.