Gold could drop to $1,700 an ounce

The multinational corporation "Standard Chartered" believes that precious metal cannot now rise in price due to a certain set of circumstances, but the depreciation will be uncritical.

The fact is that during the summer gold quotes suffered from the strengthening of the American currency, so it is not surprising that for the 5th month in a row the precious metal has shown downward dynamics.

The gold rate will not decline much further, since the downward risks have already been reflected in the price. In addition, the following factors support precious metal: the risk of a recession, physical demand, as well as an increase in inflation. Therefore, the company predicts a depreciation by the 4th quarter of 2022 to $1,700 per ounce.

In addition, the company believes that the Fed will raise rates in September by only 50 basis points, and in November and December there will be no increases.