Since gold is also considered a very effective portfolio diversifier due to its low and negative correlation with major asset classes, it tends to rebound in times of uncertainty, so one of the factors to consider is the relationship between gold and other asset classes that feel pressure or pleasure in current financial circumstances. In addition, in terms of the impact of Treasury bonds on gold, we believe that the TLT has more upward than downward potential. It's important to remember that financial markets are still extremely volatile, making it difficult to predict gold prices per ounce over a short period of time and even more difficult to provide longer-term forecasts. Today, the gold price per ounce is below its recent all-time high, but it remains above support and could be ready for another phase of growth. Jeff Clark, senior analyst at GoldSilver, explains why it's never been a better time to own gold than now.
These geopolitical tensions also increase pressure on financial markets, but they help boost the demand and value of gold. It has been on an upward streak for almost a year, but instead of taking a turn, it is expected to accelerate due to the Covid-19 pandemic. Treasury bonds have a positive correlation with the price of gold and should be combined with the euro trend to get the full picture. Gold is not an asset that is prone to large price fluctuations or high volatility, but it is known to grow almost constantly as its uses and market desire continue to increase.
However, in 2030, the price of gold is likely to be much higher than it is today, as the Covid-19 recession will help to raise its price. Since gold has been considered a valuable asset for thousands of years, it has always been wanted and in demand, but it is in the most recent history that the market has grown to become what it is today, and what it is today is a fairly mature and stable market. However, there are also many factors that help boost gold and, for the most part, have caused the price to rise slowly over the years, such as currency inflation and the need for safe assets. Interestingly, there are cases that can affect the price of gold in regional areas that are affected by factors such as weather.
In addition, the fact that gold is a scarce asset, but with an uncertain supply, means that it is often worth watching the markets and forecasting gold prices for the next 10 years can often bring positive gains over this long period of time.