Gold price of US$2000 in 2021


The psychological resistance of (gold)
USD 1,800 per ounce has been surpassed!

At Precious Metals Watch, Georgette Boele, Precious Metal Strategist-ABNAmro observes, 1: Gold powers to an all-time high across a range of currencies, 2: Against the dollar, gold’s all-time high of USD 1,921 is now within reach, 3: The stars are aligned for gold prices to continue to rise, 4: Aggressive monetary policy easing, ultra-low interest rates, negative US real yields, fiscal.

5: stimulus and the technical outlook all support gold prices, 6: Nonetheless, positioning does remain extreme which could encourage volatility, 7: Our new gold price forecast for end 2020 is USD 1,900 per ounce (was USD 1,700 per ounce) & 8: Our new gold price forecast for end 2021 is USD 2,000 per ounce (was USD 1,800 per ounce).

She inks about gold price record, we had expected another risk off wave in financial markets to support the US dollar and to result in temporary gold price weakness. Up to now this have not materialised, Gold prices have rallied strongly and have set new all-time high prices versus a number of currencies, although not yet versus the US dollar. However, on 8 July gold prices cleared an important psychological resistance at USD 1,800 per ounce. Will gold prices rally to all-time high of USD 1,921 per ounce, which was set on 6 September 2011?

Further Georgette Boele learns a Bullish outlook but she said, potential volatility due to positioning! We recognise that the stars are still aligned for gold prices and therefore the momentum is very positive. But we are also concerned about positioning. Speculators temporary reduced positions, but other investors have continued buying. Speculative positions are substantial and positions in ETFs are at an all-time high (see graphs below). If investor sentiment deteriorates, some of these positions will likely be closed. This will cause higher volatility in gold prices.

We still expect a sizeable correction in gold prices in a risk off environment when the dollar is back in favour. It is likely that this correction will be short-lived and be a buy-on-dips for investors eagerly waiting to step in. After such a correction prices could rally again. So, we have adjusted our forecast to reflect this and the technical break of USD 1,800 per ounce. Our forecasts don’t reflect the near-term dip in prices we still expect, because this sell-off will be short-lived.

Our new year-end forecast is USD 1,900 per ounce (was 1,700) and new forecast for end of 2021 is USD 2,000 per ounce (was 1,800). We have also upgraded our other precious metal forecasts as higher gold prices also support silver and platinum prices. (GJ Town India/ July 11, 2000)


Comments

Post a Comment

Popular posts from this blog

AI, virtual reality & big data impacts on industry

Image
CIBJO Technology Committee publishes the Report!     With just six days to go to the opening of the 2023 CIBJO Congress in Jaipur, India, on October 3, 2023, the tenth and final edition of this year’s pre-congress special reports has been released. Prepared by the CIBJO Technology Committee, headed by Stéphane Fischler, the report looks at the impacts of new technologies on the jewellery industry, and in particular those related to artificial intelligence, virtual and augmented reality, and big data.   “We need to learn as we move along, investing in digital infrastructure and talent, and using the data we capture in a legal and optimal fashion,” Fischler writes. “To prosper in this brave new world, we have to innovate in order not to be left behind.”   All of the various system discussed are dependent on the availability of data, collected via the Internet, and also increasingly from the data generated by the new technologies being introduced, he states. “But it is not enough t
Read more

BFC & Pandora announce the fashion awards

Image
Ties principal partnership for TFA 2023 The British Fashion Council (BFC) is delighted to welcome Pandora, the world’s largest jewellery brand, as the Principal Partner of The Fashion Awards 2023 (TFA) taking place in London on Monday 4th of December at the Royal Albert Hall.  The BFC and Pandora will work together to evolve TFA 2023 presented by Pandora as a global entertainment platform, celebrating fashion's role at the intersection of culture and entertainment, spotlighting creative talent and telling the stories of the year in fashion through the lens of purpose, excellence and creativity. The event also serves as the primary fundraiser for the BFC Foundation.   
Read more

GJEPC championing talent, celebrate design & craftsmanship

Image
The 7th Artisan Jewellery Design Awards held in Mumbai   The 7th edition of The Artisan Jewellery Design Awards, hosted by the Gem & Jewellery Export Promotion Council (GJEPC) and powered by GIA, challenged designers to tap uncharted territory by integrating unusual materials and cherished objects into their jewellery designs, to infuse their pieces with a unique identity.   Actress and style icon Sonam Kapoor graced GJEPC’s 7th edition of Artisan Jewellery Design Awards in Mumbai and presented awards to winners. Sonam Kapoor graced the stage with an aura of elegance and charisma along Vipul Shah (Chairman, GJEPC); Kirit Bhansali (Vice Chairman, GJEPC); Sriram Natarajan (Managing Director, GIA India); Milan Chokshi (Convener, Promotions & Marketing, GJEPC); Sabyasachi Ray (Executive Director, GJEPC) bestowed the coveted awards upon 6 Artisan winners.  This year the theme for the Artisan Jewellery Design Award were two unconventional themes - Objet Trouvé (Found Objects) and
Read more