Looking ahead to where the price of gold is going in 2021

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If you’ve been following our precious-metal reporting and trend-watching, you are well aware of the impressive upside gold has seen during the pandemic, as its price has shot up to its highest level ever in 2020—$2,000 USD an ounce, shattering the previous record of $1,921 in 2011.

Enjoying a 30% increase since November, the gold price has leveled out somewhat in December, but many specialists and gold observers are confident where the price of gold is going: steadily higher.

“I still think we’re in a challenging environment now, and gold relies on what the US dollar and real rates are doing and if the dollar weakens further that will be a  positive for gold, and I think gold will rally into next year,” said Mitul Kotecha of TD Securities in a CNBC video.

Wells Fargo has noted that while it’s bullish on global growth in 2021, they still see a  lot of potential for gold prices to rise next year. The bank reported that they view gold prices pushing to $2,100 and $2,200 by the end of next year.

John LaForge, head of real asset strategy at Wells Fargo, expects low-interest rates and loose monetary policy to support gold, silver and platinum.

“There’s still a lot of money printing going on and that is good for gold and silver,” he said.

An even rosier picture is being painted by European precious-metals firm Degussa, who told Kitco recently that they remain cautiously optimistic on gold’s long-term potential, even as the precious metal currently struggles to attract new investors. In the firm’s report, it noted it sees gold prices edging to $2,500 an ounce by mid-2021, and they predict a top-end range around $2,780, with a low end of the range coming in at $2,310.

“At current prices, our estimate implies an upward potential of around 30%,” the analysts said.

That kind of bullish outlook on where the price of gold is going could give gold hoarders opportunity to cash in on any gold they own and make money by selling their gold to reputable buyers they can trust.

Another expert view bolstering the gold price’s resilience is Goldman Sachs, who said in mid-November it also sees resurging emerging-market demand for gold in 2021.

“Chinese and Indian gold demand already displays signs of normalization. The Chinese and Indian gold premiums are gradually increasing and are almost back to pre-Covid levels. Biden’s election win and vaccine news should continue to push currencies of E.M. consumers higher as tariff risks are lower, supporting their purchasing power,” the analysts said.

Also, Goldman Sachs wrote that precious-metals watchers shouldn’t worry too much about the short-term fluctuations of the gold price. “In our view, the structural bull market for gold is not over and will resume next year as inflation expectations move higher, the U.S. dollar weakens and E.M. retail demand continues to recover. Near term, however, it may be difficult for gold to generate a meaningful momentum in either a higher or lower direction.”

James Steel, chief precious metals analyst at HSBC Bank, wrote in a Dec. 9 report that he expects the financial, economic and health uncertainties rooted in COVID-19 to continue to support gold in 2021 and maybe even 2022, though potentially at a reduced level. Steel said that investment demand will need to remain high to absorb market supplies as elevated prices continue to hurt underlying physical demand in sectors such as jewelry.

“Monetary and fiscal policies are providing gold with the two requirements of a bull market: debt and liquidity,” Steel wrote. “This is likely to continue for the foreseeable future and remain supportive — regardless of vaccine progress.”

Make extra money by taking advantage of gold’s run

Now that you’re armed with the data, what are you going to do about it? It could be time to make extra money, even if it’s just a bit of income that can help with groceries or renos around the house, by selling your gold jewellery or coins or bullion. You’ll want to catch up on the advice we offered in this post on how to navigate the gold-buying industry, which offers details on red flags to watch for so you can work with an experienced and knowledgeable gold buyer.

Next, check out our list of the top gold buyers in Toronto who can help you get top dollar for the gold items you’re looking to sell.

Gold.TO also offers free market evaluations so you know the true value of the precious-metal items you’d like to make extra money from, and it doesn’t matter if you live in Toronto or outside the GTA. We can work with you on finding the best way to evaluate the gold you’d like to sell.

We’re available to assist you with questions about where the price of gold is going, the value of your gold items, and the gold-buying market, so contact us anytime if you’d like to talk to our precious-metals specialists.

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