Gold May Gain More in 2021

WikiFX News (9 Jan.) - Gold prices ballooned in 2020, attributed to low-interest rates, the economic relief bill, and the weak dollar. These fundamental conditions will still be there in 2021, sending further upsides to gold prices.

With global Covid-19 infections still on the rise at the start of 2021, the economic recovery will remain highly uncertain in the short term. Several countries have adopted unprecedented fiscal and monetary stimulus. As a result, worries about inflation have been deepened, which is a substantial factor supporting gold prices.

The weakening dollar is another factor encouraging the yellow metal. Some traders expect the dollar to fall 3% more by the end of 2021.

Besides, the gold price could climb further amid the recovering retail demand of developing countries. The growing global debt, which suffers a burden of $272 trillion now, will put a premium on gold as well.

But the fundamental conditions that bode well for gold will be there for the next 12-15 months minimum, according to the National Broadcasting Company. Citibank also predicts the metal to rise to $2,400 per ounce in six to twelve months.

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Chart: Trend of Gold Prices