Gold towards the 1925 level

Last week, the gold market rose for the third consecutive week, and the spot gold price returned to around $1880 per ounce. This Monday (December 21) was affected by the final agreement reached on a new round of rescue projects in the United States, which rose sharply above 1900.

With less than 10 trading days left this year, this must be an extremely eye-catching year for gold.

Kitco global trading director Peter Hug believes that the price of gold is expected to reach the level of $1,925 per ounce when Christmas comes this week.

There were no surprises in the Fed's interest rate decision last week, and loose monetary policy will continue.

Hug pointed out that Fed Chairman Powell’s statement clearly shows that they will accelerate easing, and there will be no tightening until 2023.

"This means that the Fed still has at least two years of easing and flexible inflation targets."

Hug believes that until the global economy returns to normal in the third quarter of next year, gold continues to be bullish.

"Both from the fiscal point of view and the central bank point of view, both will continue to relax, which will promote the continued growth of the US deficit, and the dollar will weaken, which is good for gold."

Hug pointed out that the market has basically accounted for 900 billion US dollars of new projects. If there are smaller projects, the market will be disappointed.

"The other is Brexit. The possibility of reaching an agreement and leaving the European Union without a deal is basically halfway. Once there is no agreement to leave the European Union, it will be good for gold."

Britain's no-deal Brexit means a lot of uncertainty, which may bring panic, and people will flock to gold.

Hug pointed out that after crossing the $1,900/oz mark, the next step is to look at the 1925 level.