Deutsche Bank: Gold will grow
Analysts of Deutsche Bank believe that the gold's weakness should be considered as an opportunity to buy with the expectation of an upward movement. The bank does not expect a rally, but believes that growth is the way of the least resistance, given the current situation in the world.
Hopes for a quick return to the old life are melting, giving way to fear of an L-shaped recovery. Even if second wave of coronavirus won't happen, the world economy will be recovering from the pandemic for quite some time, which suggests the possibility of more and more stimulus measures, both fiscal and monetary. Deutsche Bank notes that governments and regulators can afford them, given the deflationary nature of the current crisis.
Deutsche Bank predicts the average gold price to rise to US$1800 per troy ounce in the fourth quarter.