Bank of America experts believe that the likely appearance of three different Covid-19 vaccines in 2021 has greatly influenced the gold market. The bank has adjusted its forecast for the next year: it doesn't expect the price to rise to $3,000 anymore.
'We are now neutral on gold. We see a risk of rising long-term interest rates,' the report says. The new target is $2,063 an ounce in 2021. 'As the global economy opens up, gold faces more challenges, making it tricky to hit $3,000/oz; that said, the ongoing fiscal and monetary stimulus should push the yellow metal above $2,000/oz again,' the experts concluded.
Gold's prospects for 2021 are quite good: for example, Citigroup analysts expect the price to grow to $2,500. Several factors will provide support to gold, including some that were also present during the bull trend of the 70s and 80s.
Stimulus packages by central banks will act as the key gold price catalyser, just like they did throughout 2020. Other support factors include the weak US dollar, inflation risks, falling asset yields, and financial market volatility.
Some analysts believe that gold is more of a 'psychological' rather than a productive commodity: its price is determined mostly by how much investors are prepared to pay for it. Nevertheless, gold's millennial history has shown that people buy gold during times of crisis in order to protect their savings: and it's that sort of crisis that we are living through now.
Website : https://gold.storage/
Whitepaper: https://gold.storage/wp.pdf
Follow us on social media:
Telegram: https://t.me/digitalgoldcoin
Steemit: https://steemit.com/@digitalgoldcoin
Reddit: https://www.reddit.com/r/golderc20/
Bitcointalk: https://bitcointalk.org/index.php?topic=5161544