Gold to end year at $1,700 per ounce

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Gold is expected to end this year at an average price of $1,700 per ounce.

This is based on the forecast of evolving supply and demand trends, according to Fitch Solutions, a research arm of ratings agency, Fitch Solutions.

Presently, the precious metal is going for $1,964.40 dollars per ounce on the international market. Fitch Solutions, however, forecast that gold would sell at about $1,400 dollars next year.

The price of gold has shot up this year, primarily because investors have shifted their investments into hard assets as a safe haven because of the coronavirus pandemic.

The high gold price is good for the economy as the nation will accrue more earnings to boost its trade balance.

The precious metal sold at $1,283 per ounce in May last year only to hit a high of $1,734 per ounce in June 2020.

According to the Bank of Ghana, price of gold has soared by about 17.50 per cent since January 1, 2020, as the spread of the Covid-19 with its social, economic, and financial setbacks continue to drive investors to safe-haven assets.

The combination of global central bank easing, geopolitical risks, the persisting Covid-19 pandemic impact and global recession would continue to push gold prices higher in the coming months.