Gold: More weakness in the near-term before soaring to $2,000 next year – ABN Amro

Gold prices have struggled lately. A weaker dollar has supported the yellow metal somewhat but more investors have taken profit recently. Investors are now less convinced of another rise above $2,000 per ounce and are set to continue taking profits. However, economists at ABN Amro expect XAU/USD to race higher towards $2,100 in 2021. 

See: Gold needs to clear the $1,973 September high to resume the uptrend – Standard Chartered

Key quotes

“Despite the modest profit-taking, net long positions in the futures markets and the total outstanding ETF positions remain very large. In short, position liquidation risk is still there.”

“The US elections are approaching and we think that it is likely that more investors will take profit in gold for two reasons: First, more uncertainty could result in a more risk-off behaviour and thus liquidating long gold positions. Second, expectations of higher economic growth if Biden wins could temporarily support the dollar. As a result, gold prices will probably decline.” 

“As the Fed will keep rates low for the coming years, US real yields will continue to be negative. This will support gold prices again in 2021.” 

“Next year, we expect gold prices to move towards $2,000 per ounce again.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: 20-DMA probes bounce from two-month-old support line

EUR/USD struggles to extend corrective pullback from the key support. Bearish MACD signals suggest further downside, 50-DMA acts as immediate support. Bulls need a clear break of 61.8% Fibonacci retracement for confirmation.


GBP/USD: Bears eye a trip to 1.3450 as per weekly chart

GBP/USD is testing critical support on the hourly chart. The weekly W-formation is compelling as risk-off takes hold in the open. Bears can move to a lower time frame in order to gauge for an optimal entry point from where the neckline can be bagged for profit.


Gold rebound eyes $1,848 key hurdle, US PMI, Fed in focus

Gold begins the Fed week on a slightly positive note around $1,834, following a two-week uptrend, during the initial Asian session on Monday. Gold prices rose during the last two weeks before reversing from the yearly resistance line on Thursday.

Gold News

Bitcoin bears eye catastrophic crash as BTC sellers target $29,000 next

Bitcoin price action has continued to weaken as BTC has dropped below a crucial level of support. The prevailing chart pattern projects another 16% drop for the leading cryptocurrency. The bulls may find it difficult to reverse the period of underperformance as many obstacles may emerge.

Read more

Week Ahead on Wall Street: Big earnings week ahead and it is badly needed

Next week earnings season really gets into gear with some massive releases that will shape the direction of the main US indices for the quarter ahead. US - Russia tensions may increase as negotiations reach a stalemate.

Read more