One of the early lessons we’ve learnt from 2021 is that bullish gold sentiment is going nowhere. The precious metal has raced into the New Year strong and will better its stellar 2020 performance with new record highs in the next few months according to industry expert, Frederic Panizzutti.
The precious metals specialist expects gold to be a top performer in the course of 2021, saying “We expect gold to perform well. Gold to reach new highs at £1,660 ($2,300).”
Panizzutti cites a number of factors being positive for gold, many of which will look set to stay the course for much of the year including the instatement of Joe Biden Jnr. as US president, low interest rates, a slow economic recovery and a weaker US dollar.
He said, “Vaccinations will help the world to recover, but the damage from 2020 won’t be erased very quickly. We expect gradual recovery and acceleration in the second half of the year,” he said. “We will remain in an environment where interest rates will be low and even negative in some parts of the world, GDP growth will remain low. We don’t exclude some inflationary pressures in the second and third quarters.”
Panizzutti’s view echoes that of many other investment experts, including major banks such as Saxo, TD Securities and Bank of America Merrill Lynch who’s 2021 gold forecasts all call for record price levels to be reached as a result of pandemic-related factors such as increasing inflation, loose monetary policy, low to negative interest rates and a weak US dollar.
Act quickly, buy now.