Gold Price Could Hit $5,000 In 2021?
Gold to breach US$5,000 an ounce by end-2021? |
According to he New Straits Times, Juwai IQI chief economist Shan Saeed said gold prices would likely be trading at between US$3,000 and US$5,000 an ounce by December 2021.
"There are two factors that will determine or will make an impact on gold prices - central banks' manipulation and profit taking.
He expects the US dollar and gold standard to run parallel with each other in the next two to three years.
Shan said this was a third bull-run in gold as investors would park more funds in precious metal (gold and silver) as these were the tangible asset with zero counter-party risk.
AxiCorp chief global market strategist Stephen Innes said markets were worried about a second Covid-19 surge into winter (northern hemisphere). Hence, the associated rise in volatility will favour gold as a defensive strategy.
"The economic damage is done, and even a vaccine is not going to bring back US$80 billion in global gross domestic product (GDP) that went up in smoke.
"The only real cure to claw back some of that lost GDP is low global interest rates for as far as the eyes can see and redoubled amounts of government stimuli, which is highly favourable for gold," he said.
Gold price forecast 2021: Target of $US2,400 or Drop to $US1,500 an ounce? Gold price forecast 2021: Goldman Sachs economists said that it is maintaining its 2021 gold price target of $US2,300 an ounce. In their latest gold ... |