Gold to Brace Strongest Price Action in 2021

SEATTLE (Scrap Monster): San Francisco, California-headquartered multinational financial services company said that investors are likely to witness some of gold’s strongest price actions in 2021. The company foresees signs of a developing rally in the yellow metal, which has already run up significantly over the previous year.

According to John LaForge, head of real asset strategy, Wells Fargo, gold prices have had a difficult time prior to 2018, mainly due to excessive supplies. The supply had become excessive in 2011 as well.

However, the situation has changed a lot now. Gold supplies have flipped from excessive to deficient. Similar situations in the past have sparked a rally in gold prices. Consequently, Wells Fargo has turned positive on gold, saying that the previous scenario is likely to be repeated now also. The diminishing supply growth is likely to take gold prices to up to $2,200 per ounce during 2021. Gold could be on the eve of a new commodity bull super-cycle, he added.

In addition to supply deficiency, the gold price boom will also be driven by various other factors including low real interest rates and weaker U.S. dollar. The trends are likely to remain largely intact throughout the current year, Wells Fargo said.

YOU MAY ALSO BE INTERESTED IN:

CPM Group Sees Less Chance for 2020 Gold Market Boom to Repeat This Year

Ind-Ra Released Gold Outlook for FY22