TNN & Agencies
Doha
Gold prices will break out of a tight trading range and soar through 2021 as the coronavirus recession gives way to higher inflation, stoking demand for the yellow metal, Goldman Sachs has said in its latest report.
The investment bank said that it is maintaining its 2021 gold price target of $2,300 an ounce, implying a 22 percent rally from current levels over the next 12 months, as the global economy balances between positive news of potential vaccines for the COVID-19 virus and the near-term risks of further economic devastation.
However, Jim Steel, chief precious metals analyst at HSBC, said that gold will average a price of $1,965 an ounce in 2021, owing to "competing macroeconomic forces.”
While accommodative monetary policy will continue to provide tailwinds, an unwinding of geopolitical risk from a Biden Administration will ease the appetite for gold, said Steel.
Doha
Gold prices will break out of a tight trading range and soar through 2021 as the coronavirus recession gives way to higher inflation, stoking demand for the yellow metal, Goldman Sachs has said in its latest report.
The investment bank said that it is maintaining its 2021 gold price target of $2,300 an ounce, implying a 22 percent rally from current levels over the next 12 months, as the global economy balances between positive news of potential vaccines for the COVID-19 virus and the near-term risks of further economic devastation.
However, Jim Steel, chief precious metals analyst at HSBC, said that gold will average a price of $1,965 an ounce in 2021, owing to "competing macroeconomic forces.”
While accommodative monetary policy will continue to provide tailwinds, an unwinding of geopolitical risk from a Biden Administration will ease the appetite for gold, said Steel.