As gold continues to climb in the face of economic uncertainty and stock market volatility, forecasters are anticipating the precious metal is on its way to hitting a price of $1,700 the ounce. 

“Gold has finally established some serious momentum, and more negative coronavirus headlines will see a test of $1,700 an ounce on (safe) haven flows, sooner rather than later,” Jeffrey Halley, senior market analyst at OANDA, wrote to clients. 

Fears that COVID-19 will severely crimp global economic activity are the latest spark for a rush to the safety of precious metals. But professional investors and analysts who track the technicals of the market say gold has been building towards a breakout. Pointing to a price chart, Tom Thornton, founder and president of hedge fund Telemetry, told Bloomberg Television he has a $1,750 price target for gold. “Sentiment is still very, very bullish,” he said. 

Wolfe Research technical analysts John Roque and Rob Ginsburg late last year accurately predicted gold’s climb above $1,650. They forecast gold is headed still higher. “We continue to believe that gold will make a new all-time high in this cycle,” their forecast states. 

Investment bank UBS also accurately forecast 2020’s gold rally. Analyst Joni Teves says gold’s role as a hedge against uncertainty is driving the rally, along with a stimulative Federal Reserve monetary policy and a continued drop in bond yields, boosting the relative attractiveness of gold, which, of course, does not pay interest.

“A Fed cut in April, as our U.S. economists expect, or further escalation in the Covid-19 outbreak is likely to propel the market higher and trade through $1,700,” Teves wrote to clients. “This scenario should also provide tactical upside opportunities for silver and platinum as investors consider catch-up trades.”