Gold Price Forecast

Gold price forecast 2021

Earlier this month, Samuel Burman, an analyst at Capital Economics, wrote during a note that if “there are going to be a rapid recovery in economic activity thanks to the vaccine, there'll probably be some further selling of gold-backed ETFs”. However, Burman remains positive about the metal over the longer term: “While the positive developments find an efficient vaccine against Covid-19 have boosted investor risk appetite, we still think that gold prices will remain high within the year ahead.

“All told, we expect that persistently low US real yields will support gold demand and offset much of the weakness related to a rise in risk appetite. As a result, we expect that the gold price will stabilize around $1,900 per ounce until end-2021.”

In their gold price forecast published recently, analysts at Goldman Sachs maintained their bullish outlook for the upcoming year, setting their price target for the metal at $2,300 per ounce: “In our view, the structural market for gold isn't over and can resume next year as inflation expectations move higher, the US dollar weakens and emerging-market retail demand continues to recover.

“Near term, however, it's going to be difficult for gold to get a meaningful momentum in either a better or lower direction.”

Citi bank is additionally optimistic about the commodity’s future. In their latest gold price prediction, the bank’s analysts said they see the metal rising to $2,200 per ounce in three months and to $2,400 per ounce in six to 12 months. “We lift the 2021  base case gold price forecast by $300 per ounce, versus our early July update, to a record $2,275 per ounce,” they added.

In their note on the gold price in 2021, analysts at Australian bank ANZ predicted the metal to rise to $2,200 per ounce by the top of 2020 then hike further to $2,300 by early 2021. However, this valuation will likely mark a peak within the commodity’s.