Credit Suisse (CS) is positive about gold prices (IAU) in 2019. The bank expects gold prices to average $1,280 per ounce in 2019 and $1,300 in 2020. Credit Suisse sees a number of macro factors supporting gold prices in 2019. These issues include ongoing geopolitical issues like the US-China trade war and Brexit. The bank is also concerned about slowing global growth and recession fears.
Gold miners to follow gold prices higher
Credit Suisse thinks that higher gold prices could increase gold miners’ margins. Credit Suisse expects gold equities (GDX) (GDXJ) to follow gold higher. The banks think that after the sell-off in 2018, gold equities present an attractive entry point, particularly for equities with favorable valuations.
In a recent note, Credit Suisse focused on five companies: