Gold to hit $2500 in third quarter

MASSIVE gold price revisions were reported this week as analysts estimate the impact of the coronavirus pandemic, with one investment bank upping its third and fourth quarter gold price forecasts to an impressive $2500 an ounce.
Gold to hit $2500 in third quarter Gold to hit $2500 in third quarter Gold to hit $2500 in third quarter Gold to hit $2500 in third quarter Gold to hit $2500 in third quarter

Anna Golubova

Writing for, Anna Golubova cited unprecedented fiscal and monetary policy stimulus. B Riley FBR analysts said this week they expect gold to surge to $2500 an ounce in the third quarter and continue to trade at those levels in fourth quarter. 
"It has not been our practice to forecast gold price," wrote B Riley FBR's analysts. "[But] due to our conviction in rising gold prices, we are meaningfully raising our gold price deck … to $2500/oz in the third quarter of 2020 … and we feel compelled to align our 12-month price targets to this view."
The main driver will not be a potentially deep recession or another major drop in equity markets, but extremely low rates along with "unprecedented fiscal and monetary stimulus", the analysts said. 
"Regardless of how much longer recession conditions will continue and how much further general equity markets might retreat, extreme monetary and fiscal stimulus policies being enacted on a global basis will have repercussions," B Riley FBR's note stated. "These repercussions will likely parallel 2009 to 2011, and drive gold price to new highs."
Gold miners will greatly benefit from this surge in prices once the economy begins to return to normal more or less, the analysts added. 
"We believe the current macro environment has been primed to drive gold prices to the $2500/oz level. During such a gold price ascent, gold will be the best performing asset class, and gold related equities will be the best performing equity sector," they wrote.