101,000
Market gold last year showed impressive growth. Dragmetal managed to beat the $2,000 mark per troy ounce. None of the analysts in their 2020 forecasts mentioned this level. However, we must admit that none of them at that time could have foreseen the coronavirus pandemic and assessed its consequences for the world economy. Demand for gold has been supported for much of the year by negative sentiment in the face of uncertainty about the future economic outlook. It was only after learning of the successful study of the vaccine and the impending vaccination of the population that the gold market lost some of its growth. He returned to the zone below $2,000. What gold show us in 2021?
What to expect from the gold market
Many experts agree that the current price of precious metals already contains a baseline scenario. It assumes that the global economy will be successfully reborn through vaccines. But that does not mean that gold has no reason to raise the price. Even assuming that the spread of coronavirus infection around the world will be stopped in the coming months, it will take a long time to “clean up” what the pandemic has done. Huge debts and rising inflation will affect investor sentiment and decisions. In such a situation, demand is unlikely. Many investors will still prefer gold. As a result, precious metals prices may return to $2,000 in the first months of this year. This will also be facilitated by an additional stimulus package supporting the US economy. The US authorities have already allocated more than three trillion dollars for this purpose. But Joe Biden recently announced his intention to increase the aid program by several trillion dollars more. The expected continuation of the fall in the dollar will increase investor interest in gold. This is especially important for those who hold other currencies. The average troy ounce cost this year is expected to be close to $1,980. The return of the gold price to the level of 1400-1500 dollars, if this happens, is not earlier than the end of next year. It should also be taken into account that the pace of global economic recovery this year may be negligible compared to forecasts. For this reason, an increase in demand for protective assets, including gold, may exceed current expectations. If you sum up everything you said, we can say that the growth factors in the precious metals market are almost exhausted. Nevertheless, golden in 2021 continue to rise in price and even update the historical record. Inga Fedorova 13.01.2021 Record gold forecast for 2021 The Journal for Forex Traders forex-for-you.ru.