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Gold March 03, 2021 09:30:10 PM

Fitch Solutions Lowered Gold Price Forecast for 2021

Paul Ploumis
ScrapMonster Author
Following volatility in the forthcoming weeks, the prices are likely to trend lower over the next six months to one-year period.

Fitch Solutions Lowered Gold Price Forecast for 2021

SEATTLE (Scrap Monster): The latest industry report published by Fitch Solutions noted that investor sentiments towards gold have eased significantly over the recent months. It must be noted that gold prices had witnessed a stellar rally during the first half of 2020, with prices touching new peak in August last year. The prices of the yellow metal have trended lower since the start of 2021.

According to Fitch, the prices are likely to receive support during March-April this year, aided by higher inflation rates. The real bond yields are likely to remain in negative territory, thus pushing real interest rates lower. This could lead to temporary boost in gold’s appeal in the short-term.

Following volatility in the forthcoming weeks, the prices are likely to trend lower over the next six months to one-year period. Accordingly, the gold price forecast for the current year has been slashed from earlier $1,850/oz down to $1,780/oz. The average price for 2021 is likely to remain similar to the level of $1,773/oz in 2020.

Meantime, Fitch maintained its price forecasts for 2022 and beyond, saying that it expects gold to trend lower owing to normalization of monetary policy and rise in U.S. Fed interest rates.

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