Home » Business » Record expectations for gold prices .. will continue to rise, and this will be recorded in 2021!

Record expectations for gold prices .. will continue to rise, and this will be recorded in 2021!

With gold continuing to hold up above $ 1900 an ounce for a period of more than one and a half months, the global investment bank UBS expects that the precious metal will continue its steady rise during the coming period, amid a state of uncertainty surrounding the global economy in the midst of the Corona pandemic.

The bank’s chief commodity analyst, Yu Zhou Guoan, told CNBC that her bank had raised its expectations for the price of gold next year from the level of $ 1850 an ounce to the level of $ 2,100, with expectations of a high demand for the metal, which investors prefer as a store of value and a safe haven in times of crisis.

Since the beginning of this year, gold prices have risen by about 30%, as it surpassed the levels of $ 2000 an ounce earlier last July, hovering around its highest levels in several years with the decline of the US dollar, whose rise undermines the attractiveness of dollar-denominated assets such as gold.

“We are very optimistic about the performance of gold in the coming period. We believe that prices will continue to rise, but what is really interesting is that prices will remain high for a longer period than expected,” said Yu Zhu Guan.

Zhu also indicated that a negative or zero interest rate environment will support the performance of the yellow metal during the coming period, amid the tendency of a number of major central banks around the world to adopt expansionary monetary policies aimed at stimulating their economies, which are deeply distressed by the consequences of the pandemic.

And last week, the US Federal Reserve kept interest rates unchanged, and hinted to continue expansionary policies and keep interest rates at low levels until 2023, as the Bank of England, the Bank of England, hinted, for the first time in its history, to the possibility of resorting to negative interest rates to stimulate The economy has been hit hard by the outbreak of the mysterious virus.

Guan added that the purchases of ETFs would play a major role in continuing the rise of gold during the coming period with the steady increase in the holdings of these funds of the yellow metal.

A report by Bloomberg indicates that these funds have succeeded in adding new purchases of yellow metal bullion during the last period, estimated at 50 billion dollars, in the biggest frenzy of buying gold bars since the 19th century, which occurred in California in the United States when it was widely believed. That gold is the only source of wealth creation.

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