Gold price projections in August 2020
Following the model developed by the AXL Capital Management team, this report provides the projected levels of gold prices for August 2020. For August, the model indicates an upper limit of 2,077 US$/Oz and a lower limit of 1,898 US$/Oz. On average, the model shows 1,987 US$/Oz. The economic reactivation plan in July exceeded analysts' expectations adding 1.8 MM Vs. 1.6 MM expected, and unemployment claims decrease week by week (1.31 MM). US COVID-19 infections reached 3.8 MM versus the previous month's report, which indicated 3.1 MM and 160,737 Vs. 133,420 previously reported deaths. At AXL Capital, we believe that the uncertainty in the coming months will be the presidential elections in the USA, which would favor gold prices in the short term. In the medium term, the money injected by the Federal Reserve (more than 2.8 trillion US$) could generate inflation. For which reason, Gold will continue to be appreciated and valued as the preferred refuge asset.