Gold price at $ 2300; Silver price to exceed $ 30 in 2021 – Metals Focus


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(Kitco News) – 2020 has been a historic year for gold and silver as unprecedented stimulus measures across the world have been unleashed in financial markets. And a company is asking for higher prices next year.

In its outlook for 2021, analysts at UK research firm Metals Focus said they expect gold prices to hit $ 2,300 an ounce next year. Meanwhile, silver prices are expected to average around $ 28.60 per ounce over the year, as they peak at $ 30.00.

The comments come as gold and silver pushed back critical support levels after the poor performance in November. December gold futures last traded at $ 1,843.50 an ounce, up 0.73% on the day; Meanwhile, March silver futures last traded at $ 24.135 an ounce, up 23% on the day.

“Precious metals have come under significant pressure recently as investors revisit cyclical stocks after news of the vaccine started to arrive,” said Neil Meader, director of gold and silver at Metals Focus in the report. “But we doubt that holds up. It will take time for the vaccine to be widely deployed. We also don’t expect a return to normal until at least mid-2021.”

Metals Focus analysts said the gold market would continue to benefit from further stimulus, low bond yields and mounting inflationary pressure.

“Low yields benefit gold from the minimal opportunity cost of owning the metal. It also limits the bond market’s ability to act as a hedge against stock price corrections, ”analysts said.

At the same time, the company also sees the potential of the attraction of gold as a safe haven to attract investors.

“Under the Biden administration, the US: China relationship is likely to remain difficult, while geopolitical risks still exist elsewhere. All of these factors, coupled with rising inflation expectations, should continue to support investment in the gold, pushing prices up 14% to an average of $ 2,030 in 2021, ”said Neil.

On silver, Metals Focus said the precious metal will continue to benefit from the rally in gold but will also be boosted by rising industrial demand.

Analysts said industrial demand for silver is expected to return to 2019 levels next year. With the market expected to experience the sixth year of surplus, Metals Focus said growing investor demand should be enough to remove much of the market slack.

“Once the gold rally resumes, tactical buying will help fuel further price gains for silver,” said Neil. “This should help silver outperform gold, which we believe will see the gold / silver ratio continue to decline in 2021.”

When it comes to PGM metals, Metals Focus expects platinum and palladium prices to rise in 2021.

Analysts predict that platinum will average over $ 1,000 an ounce next year. For palladium, they see prices climbing to $ 3,000 next year and averaging around $ 2,600.

“Palladium will hit its tenth consecutive deficit and lead to a further decline in surface inventories. This in turn will help support the expected price hike we are calling for 2021,” analysts said.

Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. It is not a solicitation to effect an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.

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