Gold price to jump over 20% next year

SourceThe UAE News
SectorFinancial Markets

There are different price brackets but all the major investment banks and gold analysts have consensus that the gold price will go up next year with a range of $1,965 an ounce to $2,300, according to media reports. Gold prices will break out of a tight trading range and soar through 2021 as the coronavirus recession gives way to higher inflation, stoking demand for the yellow metal, Goldman Sachs said. Goldman Sachs said that it is maintaining its 2021 gold price target of $2,300 an ounce, implying a 22 per cent rally from current levels over the next 12 months, as the global economy balances between positive news of potential vaccines for the Covid-19 virus and the near-term risks of further economic devastation. However, Jim Steel, chief precious metals analyst at HSBC, said that gold will average a price of $1,965 an ounce in 2021, owing to “competing macroeconomic forces.” While accommodative monetary policy will continue to provide tailwinds, an unwinding of geopolitical risk from a Biden Administration will ease the appetite for gold, said Steel. Steel stressed that the forecast of $1,965 an ounce more...