Driven by low interest rates, economic rescue plan, weakening dollar and several geopolitical and economic events, the price of gold rose rapidly in 2020, reaching an all-time high of $2,070 per ounce on August 6. The NBC Financial Channel believes that the bull market factor leading to the rise of gold price in 2020 will continue to exist for at least 12 months to 15 months.
Citibank predicts that the price of gold will rise to $2,400 per ounce within six months to 12 months. ANZ Bank of Australia predicts that by the end of 20021,the price of gold will rise to $2,300. Goldman Sachs set the target price of 202 1 gold at $2,300 per ounce; HSBC believes that gold will remain strong in the first half of 200212002, and then the trend tends to ease.
Extended data:
Although the number of people infected with COVID-19 virus continues to increase in most countries around the world, the speed and depth of economic recovery in the near future are still uncertain. The main way for governments to deal with the epidemic is to implement unprecedented fiscal and monetary stimulus measures. The huge increase in money supply makes it difficult for the market to eliminate concerns about inflation.
The continued weakening of the dollar is another important factor supporting the price of gold. In 2020, the dollar began to enter the downward channel. By the end of 10, the US dollar index had fallen to the lowest point since April, 20 18, a drop of more than 4%. On average, traders predict that by the end of 20021,the US dollar will fall by 3% from the current level.
The sustained recovery of gold retail demand in developing countries will also push up the price of 202 1 gold. According to the analysis of Goldman Sachs Group, the demand for gold in China and India has shown signs of normalization. At the same time, after Biden, the newly elected president of the United States, took office, the risk rate of foreign tariffs in the United States declined, which will promote the appreciation of currencies in emerging market countries and enhance the purchasing power of consumers in these countries.
The increasingly serious debt problem also supported the price of gold. At present, the global debt burden is as high as $272 trillion. In addition, geopolitics, COVID-19 vaccine effectiveness and other factors will also affect the trend of 202 1 gold price.
People's Daily Online-Analysts predict that the price of 202 1 gold will continue to rise? Even set a record high.