icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
19 Jul, 2020 14:16

Gold price set to soar over 20% this year, Russian analysts predict

Gold price set to soar over 20% this year, Russian analysts predict

Gold will extend its rally as the price may surge more than 20 percent in 2020, according to a recent forecast from Russia’s National Rating Agency (NRA).

The economic uncertainties triggered by the coronavirus pandemic have sparked interest in the traditional safe haven asset. In the first half of the year, the price of the precious metal rose 26 percent, hitting a near decade high.

However, the NRA expects gold demand to cool in the next six months as fears about the economic fallout from the coronavirus outbreak wane, leading to a downside correction. Although gold price growth may slow to 15-17 percent in the second part of the year, the annual average price will still grow by 21 percent, the agency said.

Also on rt.com Russia now makes more money from gold than natural gas exports

Russian gold producers are projected to be the biggest beneficiaries from the price rally. According to analysts’ estimates, gold miners will enjoy better financial performance and will see their annual revenues growing around 30 percent.

Russia is the third-largest gold producer in the world after China and Australia. Last year, the country produced 368 tons. While gold production rose around five percent in the first quarter, Russian producers saw a 20-percent year-on-year decline in April as the coronavirus pandemic triggered lockdowns across the country.

READ MORE: Covid-19 crisis pushing gold price to all-time highs

Given the impact of the coronavirus pandemic on the industry and the Russian economy, the NRA does not expect gold output to differ much from last year’s figures. The analysts’ forecast is more pessimistic than the one presented by the Union of Gold Producers of Russia. In June, the association said that it expects gold production to increase up to one percent this year.

For more stories on economy & finance visit RT's business section

Podcasts
0:00
23:13
0:00
25:0