REUTERS/Ilya Naymushin Gold prices will break out of a tight trading range in 2021 as inflation worries stoke demand, Goldman Sachs analysts said in a note.
The bank holds a $2,300-per-ounce price target for the precious metal, implying a 22% rally from current levels over the next 12 months.
Though gold typically falls when long-term interest rates rise, the financial crisis disrupted the pattern and saw gold rise through 2012 as investors feared for strong inflation.
Goldman expects a similar trend to materialize next year as recovery from the coronavirus recession fuels higher price growth. Goldman Sachs expects gold to break out of its narrow trading range and soar through 2021 as the coronavirus recession gives way to higher inflation.Bullion has hovered around $1,900 per ounce after its summer rally to record highs fizzled out in August. US election uncertainty fueled a brief rally, but […]
November 18, 2020 (updated November 18, 2020) Published by StockMan