Commerzbank bullish on record prices to end 2021

The German bank, Commerzbank says that it sees gold closing out 2021 at new highs with the precious metal set to be energised through the rest of the year as a result of inflation concerns and monetary policy. In keeping with industry consensus, the bank is also expecting gold to reach or exceed £1,414 ($2,000).

The bank’s well-known analyst Carsten Fritsch said, “In view of the high inflation expected in the coming months and the significantly negative real interest rates as a result, demand among ETF investors should remain high, thus lending additional tailwind to gold. The current debate within the Fed about a possible reduction in bond purchases is still very much in its early stages.

“If it were to take a more concrete shape, causing bond yields to rise, gold would briefly come under pressure – as has been seen in past months when yields increased. However, this is unlikely to weigh on gold for any prolonged period so long as yields remain below the rate of inflation. We, therefore, expect the price to climb to $2,000 per troy ounce by year’s end.”

Buy now.

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest