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07.12.202015:52 Forex Analysis & Reviews: Gold price to hit $2,300 in 2021

Analyst firm Metals Focus predicts that gold will rise to $2,300 in 2021. Also, analysts of the company do not exclude an increase in the cost of silver to $30.

At the moment, the precious metals market is under pressure, as news of effective coronavirus vaccines has attracted investors' interest. They returned to the stock market again. Nevertheless, there is no point to think that the optimism in the market will last for a long time, as the distribution of the vaccines around the world will take a lot of time. In other words, the situation will remain difficult until at least mid-2021, as analysts from Metals Focus said.

Analysts are confident that the gold market will continue to grow due to stimulating measures from central banks, low yields on government bonds, as well as the risk of inflation. Moreover, it is more profitable to store gold in comparison to low yields on government bonds. The yellow precious metal will act as a protective asset. It has proven its protective function during the previous crises.

Today, the price of gold is experiencing a protracted correction. That is why this is a good chance to increase your investments in the face of the growing crisis. On Monday, gold is trading at 1,831.23.

Where will the gold price move next?

Experts advise traders to look at a broad perspective. According to the previous crises, the price of gold has always been under pressure in the short term. Firstly, due to the panic, investors sold the most liquid assets to get cash. Secondly, after the price rally, speculators sold their positions in order to fix profits. Moreover, hope for a rapid recovery in financial markets also weighed on gold. Now everyone hopes for a gradual recovery of the global economy that could be triggered by mass vaccinations and the victory over the coronavirus.

However, in the long term, gold has all chances to grow. Central banks continue to print unsecured money to overcome the crisis. As a result, national currencies will lose in value. The rise in inflation will force many investors to turn their attention to gold again, because gold is a precious metal that allows traders to save money from complete depreciation.

Kate Smirnova,
Analytical expert of InstaSpot
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