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Gold December 22, 2020 08:00:09 PM

Gold Prices to Scale New Heights in 2021

Paul Ploumis
ScrapMonster Author
The interest rates are unlikely to go much higher next year.

Gold Prices to Scale New Heights in 2021

SEATTLE (Scrap Monster): The gold prices are poised to retest new highs next year, says Aberdeen Standard Investments. The agency predicts that the prices of the yellow metal are likely to push higher above the $2,000 per ounce level in 2021, as the impacts of the pandemic are likely to extend further.

According to Steve Dunn, head of exchange-traded products, the gold prices have been unable to hold above the key support level of $1,900 per ounce, amidst stimulus measures announced by the U.S. administration to fight the Covid-19 economic slowdown. The measures announced till date are not sufficient. The authorities may be forced to declare additional stimulus measures, he noted.

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The interest rates are unlikely to go much higher next year. This in turn will lend support to gold prices. The low interest rates will bring down the U.S. dollar, thereby benefiting prices of gold. The negative yields by bond markets will provide the biggest support for precious metals including gold.

There exist not many alternatives to traditional fixed income products. Gold is likely to emerge as a better alternative, especially considering the nominal yields on long-term bonds. The real yields are likely to fall further in 2021, which in turn will drive gold prices higher. In short, gold is likely to touch the highs witnessed in August this year.

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Metal Test Magnet With Handle 18 lb N52 Grade Neodymium Rare Earth

Industrial Test Magnet 30 lb N52 Grade Neodymium Rare Earth With Handle

Industrial Test Magnet 30 lb N52 Grade Neodymium Rare Earth With Handle

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Metal Test Magnet

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