SEATTLE (Scrap Monster): The economic and health uncertainties due to coronavirus pandemic lifted gold’s appeal as a safe-haven asset. The prices had touched all-time high in August 2020. With economic uncertainties likely to persist, the yellow metal is expected to glitter more in the upcoming year as well.
According to Gnanasekar Thiagarajan, CEO, Commtrendz Risk Management Services, the gold outlook remains strong despite the prospects of effective vaccine against the virus and economic revival post Covid-19, mainly triggered by fresh stimulus measures. The weakening dollar could help gold prices rise again, he added. Thiagarajan hopes that investment buying will flourish next year.
Tapan Patel, Senior Analyst-Commodities at HDFC Securities also shared bullish view on gold prices. The gold prices are likely to touch $ 2,150 and USD 2,390 in COMEX gold and Rs 57,000 and Rs 63,000 at MCX. The slower pace of economic revival coupled with boosted stimulus measures will drive gold prices, he added.
In 2021, gold will continue to remain in focus for investors, as central banks across the globe are expected to keep rates low, said Nish Bhatt, Founder and CEO, Millwood Kane International. Further stimulus package may boost dollar liquidity, thus weakening dollar. The weak dollar will push up gold prices, he noted.
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