Gold to march higher towards $2,200 in the first quarter of 2021 – ANZ

FXStreet Team FXStreet

Negative real interest rates, additional liquidity injections and prevailing uncertainty are broadly supportive for precious metals. Gold, which is attempting to recover but has yet to recapture the $1,900 level, should continue to attract safe-haven flows. Economists at ANZ Bank forecast the yellow metal to reach $2,200 in the first months of the next year.

Key quotes

“Central banks remain dovish, with interest rates expected to sit near zero. Ongoing quantitative easing should support investor demand.”

“We still expect gold prices to peak $2,200/oz in Q1 2021.”

“Bond yields rose sharply this week following news of a successful coronavirus vaccine trials. This saw gold prices come under pressure. However, real rates are the real driver of gold prices. And they continued to push higher as inflation expectations rose.”

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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