Gold prices have been rising in recent weeks but very slowly, helped by a weaker dollar. Investors are now less convinced of another rise above $ 2,000 per ounce and ready to continue taking profits, say analysts at ABN Amro, who also estimate it will hit $ 2,100 in 2021.
Key statements:
“Despite modest profit taking, net long futures positions and total ETF outstanding positions are still very large. In short, the risk of liquidation of positions is still there. ”
“The US elections are approaching and we believe that more investors are likely to profit in gold for two reasons: First, greater uncertainty could result in risk-averse behavior and therefore liquidating long positions in gold. Second, expectations of higher economic growth if Biden wins could temporarily support the dollar. As a result, gold prices are likely to go down. ”
“As the Fed will keep rates low for the next several years, real US yields will remain negative. This will support gold prices again in 2021“.
“Next year, we expect gold prices to move towards $ 2,000 again.”
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
