Investor, consumer demand spike to spur gold rally in 2021

Investor, consumer demand spike to spur gold rally in 2021

A predicted upswing in demand from investors and consumers will add to the sheen of gold in 2021, prompting prices rise to $2,300, as the global economy gets back to a growth mode in the post-pandemic phase, precious metal analysts said.As investors tend to navigate potential portfolio risks including ballooning budget deficits, inflationary pressures and market corrections amid already high equity valuations, the appeal of gold as a sure-fire hedge is bound to increase, World Gold Council said in a report.“In this context, we believe gold investment will remain well supported while gold consumption should benefit from the nascent economic recovery, especially in emerging markets,” WGC said in its Gold Outlook.The new year will bring in more uncertainty, and the yellow metal will thrive on more stimulus, inflation risk, and Bitcoin's bubble bursting, according to Edward Moya, senior market analyst at OANDA, a leader in currency data."2021 is going to be a very strong year for gold. I am very bullish. $2,300 will be a key level," Moya was quoted as saying in Kitco News. "This pandemic has done tremendous economic scarring to the US, and what you are probably going to see is unprecedented fiscal and monetary stimulus continue