Gold: Wells Fargo sees another $ 500 potential

The gold price broke the $ 1,800 mark in both the future and the spot and continues to move upward in early European trading. The magical $ 2,000 mark, which seemed so infinitely a year ago, is now within reach. But if it were up to the US bank Wells Fargo, it would only be an intermediate step. “We still like gold at this level,” the analysts write, calling a price target of $ 2,200 to $ 2,300 for the end of next year.

In May 2019, gold finally and finally exceeded the resistance level of $ 1,300 an ounce – after the precious metal had failed here six years earlier. “Since then, gold has reached the next major resistance levels relatively quickly,” wrote Austin Pickle, an investment strategy analyst at Wells Fargo. “With our year-end 2020 target of $ 1,800 to $ 1,900, we were asked if we still like gold at that level .

 

A clear answer

The short answer is a clear yes. ” Wells Fargo sees good chances that gold will rise to $ 2,200 to $ 2,300 by the end of next year. That means upside potential of up to $ 500. “Gold has a number of factors working in its favor, and we believe gold is on the way to new highs,” Pickle writes on Monday. However, it will not go up linearly. “Gold could take a breather in the short term “Pickle said.