After falling below $1200 per ounce in 2018, gold rebounded sharply over the next 12 months, and a significant bullish trend began. Its yield increased by almost 20%, whereas its quotes went up to $1,556 per ounce. The rally continued in 2020. The COVID-19 pandemic increased the popularity of the precious metal as a hedging instrument, which has led to an increase in its price.
In January 2021, the price of gold fell due to the Biden administration’s $1.9 trillion coronavirus relief package. The price of gold would fall every time the US government announced anti-coronavirus programs and plans. In March 2021, the price declined due to economic recovery, which was possible thanks to vaccinations. In March, the price was $1,696.25, which was even lower than in January. At the beginning of June, the price went up to $1.896.60 – back to January’s figures – but failed to maintain this level and fell to $1,755.45 due to the changes in the US dollar rate.
In this article, we’ll look into historical data, see what experts have to say, and make a gold price forecast and prediction for 2021 and some years ahead.
The article covers the following subjects:
- A Recent History of Gold
- Gold Price Today
- Gold Price Prediction for 2021: What Do Experts Predict?
- Gold Technical Analysis
- Gold weekly price forecast as of 15.11.2021
- Gold Price Forecast 2022
- Gold Price Forecast 2023
- Gold Price Forecast 2025-2030
- How Has the Price of Gold Changed Over Time?
- Factors That May Affect the Price of Gold
- Conclusion: Is Gold a Good Investment?
- Gold Price Forecast FAQ
Gold Price Prediction for 2021: What Do Experts Predict?
In May 2021, consumers from China showed great demand for gold due to the beginning of the holiday and wedding season. Still, the escalation of the COVID-19 pandemic disrupted purchasing in India – one of the major global markets.
The gold price remaining below $1,800 per ounce indicates a “lack of an immediate impetus to buy the yellow metal,” analysts at Canadian bank TD Securities said in June 2021, “as the Fed clarified its reaction function with respect to an upside scenario in inflation, which suggests the Fed isn’t behind the curve by any means.”
Speaking on the gold price outlook, Amit Sajeja, Vice President of Research at Motilal Oswal, said, “Gold price is going through consolidation, and the trend is expected to continue for the next month till it is trading in the range of ₹48,300 ($646.34) to ₹49,500 ($662.40) per 10 gm. However, I would advise gold investors to look at every correction as a buying opportunity, as gold’s price outlook in the medium-term looks positive, and it may go up to ₹51,000 ($682.47) per 10 gm in the medium-term time-horizon.”
According to analysts at Australian bank ANZ, “Gold’s upside looks limited by rising yield and buoyant risky assets.” ANZ’s gold price prediction says that the precious metal is expected to rise up to $2,000 per ounce by the end of September but then fall back to $1,900 by the end of 2021 and $1,800 by mid-2022.
Analysts at Citibank, as well as ABN, noted that the gold price has dropped below technical support at $1,750-1,765 per ounce, and their year-end target of $1,700 per ounce, before ticking higher.”
According to our forecast, in 2021, there should be a rise in the rate of gold, but not above $2,000 per ounce. The following factors will facilitate this:
- The increase in inflationary expectations and the weakening of the US currency will result from generous fiscal and monetary stimulus.
- An increase in investment demand and a gradual recovery in consumer demand in China and India will support the precious metal rate at a high level.
- Government bonds (government debt) will not play the role of defensive assets in the face of inflation and negative interest rates since they will cease to generate income.
At the same time, the opportunity cost of owning gold decreases. This will increase the popularity of the precious metal in the eyes of investors in 2021.
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