Goldman Sachs, Citi betting on $2,000 gold in
2021
Is the bull market for gold over?
Bullion buying has subsided since Pfizer, Moderna, and AstraZeneca announced mostly effective coronavirus vaccines. As much as $4 billion has been removed from gold markets.
It would be easy to think that gold would not top $2,000 again, or that silver’s explosive rally is complete.
But Goldman Sachs and Citibank think gold will still test the $2,000 mark in 2021.
Citi thinks the vaccine news will slow down, which is already evident in the broader financial market, and have little impact on long-term prices. It has a 12-month point-price target of $2,325 per ounce.
Goldman thinks gold will surge on “concerns over currency debasement and recovery in retail purchases.”
“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 EM retail demand continues to recover,” Goldman analysts Mikhail Sprogis and Jeffrey Currie said in a research note.
Indeed, price inflation will be rampant in 2021, and you are beginning to see the warning signs of higher costs for the things people want.
To echo Robert Wenzel, hug your gold coins.
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