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Monday, June 24, 2024

Gold Price Prediction 2021: Gold can rise to nine

Gold prices at the end of the current bull cycle could hit a fantastic $ 15,000 an ounce, according to Goehring & Rozencwajg. Gold prices have been declining in recent months, dropping recently to lows since last May below $ 1,700.

“The pressure on the gold market is caused by the ongoing sell-off in debt markets, where the yield on 10-year US government bonds recently exceeded 1.6%,” said the FxPro analyst team.

The current decline in prices on the gold market may change its trend within a year. The yellow precious metal may return to an upward trend in the second half of this year, according to Goehring & Rozencwajg, gold writes.

Also Read: Oil Price Prediction 2021

It is inflation that will become the catalyst that will return the precious metal on the rails of an upward trend. At the end of the current bullish cycle, one ounce of gold could rise to $ 15,000, according to Goehring & Rozencwajg. And this is just a conservative scenario.

“We still believe that in the long term, one ounce of gold could be worth $ 15,000 before this bull market ends. For patient investors with a long-term planning horizon, we recommend an aggressive strategy to accumulate gold and silver with every correction in their value, ”says Goehring & Rozencwajg.

The current correction in the gold market is quite justified, since after its completion the price growth will continue, according to the Canadian mining company Yamana Gold.

The precious metal will receive support for growth from accelerating inflation. Prolonged lockdowns in many countries around the world have resulted in pent-up demand such as dining, traveling abroad, shopping and more. If this demand is given the green light, then an inflationary cycle will begin, which will have a positive effect on the pricing of gold. Gold stocks will also benefit from this.

Investors in the US are buying up physical gold, according to a survey of the precious metals market published by the World Gold Council (WGC). The demand for gold coins and bars this year will remain at a high level, according to the WGC.

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