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“We expect gold prices to approach 2,100 pounds an ounce by 2021 due to low interest rates in the United States,” said Samuel Berman, assistant economist in the commodity economics division of Capital Economics. However, there are several risks. That is, US interest rates are likely to rise. There is also the possibility that, if America’s economic recovery accelerates, people will withdraw their investment in gold as a safe investment.
Gold prices hit a new record in August at £ 2,075 an ounce. Interest rates fall during a severe lockdown earlier in the year. Also, people are turning to gold as a safe investment. Then when the stock market recovers, people stop investing in risky sectors. After that, when the news from Tika began to arrive, the price of gold rose further in November.
Meanwhile, various rating agencies say the global growth rate in 2021 will be 7.6 percent. It will cut the uncertainty.
However, the US Federal Reserve will not allow the Federal Reserve to raise interest rates that much. Also, the recovery process will depend a lot on controlling the virus infection. There will be a kind of uncertainty. There are many complications with vaccination. As a result, people’s interest in gold will decline, it is difficult to swear. That is why gold prices are expected to rise.
