Strategists at UOB Group’s Quarterly Global Outlook noted the precious metal could advance to the key $1,800 mark per ounce in early 2021.
“Amidst the uncertain economic times, gold is probably the only key commodity with a distinctive and clear positive outlook. All the key positive drivers remain in place. Global central banks continue their massive monetary policy easing, providing a strong and steady tailwind for gold. Adding to the tailwind, safe haven allocation demand remains strong amidst the on-going economic uncertainty. As such, the question for gold is not one of whether the recent strength is sustainable? This more pertinent question for gold is how strong the rally will be?.”
“Overall, we maintain our medium to longer term gradual positive outlook for gold. We forecast gold at USD 1,700 / oz in 3Q20, USD 1,750 / oz in 4Q20, USD 1,800 / oz in 1Q21 and USD 1, 850 / oz in 2Q21.”
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.