1-866-646-8465
CHARTS
0

Your Cart:

Subtotal: $0.00

Here’s Why Gold’s Bull Run Probably Isn’t Over

It's the End of 2020: Is Gold's Bull Run Over?

Gold prices have seen a meteoric rise over the past few months. Is the recent surge over? Prominent market watchers see evidence of an ongoing bull run, and many say gold prices could climb even higher over the long term. We invite you to review their insights and decide for yourself.

Interest Rates, Inflation, and a Weaker Dollar

A slew of analysts are bullish on the prospects for gold prices following “a slate of positive vaccine news,” which weighed on gold and temporarily reversed the safe-haven moves into gold. TD Ameritrade calls this recent sell-off “misguided.”

What’s behind the optimism? Australia and New Zealand Banking Group summarize the reasons: real interest rates, inflation, and a weaker U.S. dollar. The banking group believes those factors could push gold to $2,100/oz. next year, according to Kitco.

Meanwhile, CIBC expects gold to average $2,300/oz. in 2021. Compare that with gold’s price of around $1,860/oz. in early December. Analysts at Goldman Sachs also are optimistic about gold prices in 2021, setting a target price of $2,300/oz. They see a “strong strategic case for gold.”

“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 [emerging market] retail demand continues to recover,” Goldman Sachs forecasts.

At Citibank, analysts in October predicted a gold price of $2,200/oz. over the course of three months and a price of $2,400/oz. over a span of six to 12 months.

“Although nobody has a crystal ball…the majority of forecasts now point toward the metal performing steadily well in 2021,” Capital.com notes.

While nobody has a crystal ball, Forbes contributor Jeff Opdyke envisions 2021 being “The Year of Gold,” with its price shooting past the record high of $2,072.49/oz. set on August 7, as reported by Reuters.

“Very likely, gold tests the $2,500 level in 2021, a 30% gain from current levels. The metal could even test $2,700, depending on the global market’s reaction to a declining dollar,” Opdyke writes.

Stimulus Money and Safe-Haven Support

While not pinpointing an exact target price for 2021, Bloomberg News notes that stimulus money flowing into the world economy could spur higher gold prices next year.

“Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the [financial] crisis would signal a turning point for the rally,” Bloomberg reports. “But the precious metal also serves as a hedge against inflation. And with the massive amounts of money being poured into the global economy this year, any signs of rising consumer prices could send investors diving back to bullion.”

That safe-haven asset is buoyed by positive sentiment from Wall Street analysts and Main Street asset holders. A recent survey by Kitco found that 71% of Wall Street analysts and 65% of Main Street asset holders are bullish about the yellow metal.

“Not only is the gold market seeing strong technical support for higher prices, but some analysts also note that the precious metal continues to enjoy strong fundamental support,” Kitco emphasizes.

We’re always watching gold prices, and you can, too. Bookmark these resources and U.S. Money Reserve’s gold price chart.

Recent Articles

What Is Silver Used for? 10 Fascinating Uses for Silver

What Is Silver Used for? 10 Fascinating Uses for Silver

Silver might not always get the glory and attention that gold does, but it remains one of the most useful precious metals in the world. Solar technology, electronics, soldering and brazing, engine bearings, medicine, cars, water purification, jewelry, tableware, and...

Can an IRA Account Be Gifted?

Can an IRA Account Be Gifted?

One of the most important reasons we work to grow our wealth is to leave something behind for our loved ones. For my parents, this was not an option. They were entrepreneurs and immigrants who were not aware of all their savings and retirement options. Thankfully, I...

Gold Stocks vs. Physical Gold — What Is the Difference?

Gold Stocks vs. Physical Gold — What Is the Difference?

You want to buy gold to help diversify your portfolio, but you’re not sure whether you should buy physical gold vs gold stocks. You may be asking yourself: Are they essentially the same thing? Does your portfolio experience the same benefits if you buy physical gold...

Can You Buy Gold and Silver From a Bank?

Can You Buy Gold and Silver From a Bank?

Central banks are among the largest buyers of gold and have some of the largest gold holdings, yet it’s very rare for customers to be able to buy gold at banks. In fact, it’s unusual for typical banks to sell any precious metals. And even when they do, their selection...

Flying with Gold Coins? What You Need to Know About TSA Guidelines

Flying with Gold Coins? What You Need to Know About TSA Guidelines

You’ve decided to buy gold coins for your four kids as holiday gifts, and you’ll be flying from Albuquerque to Atlanta with these prized presents. First off, you’re a great gift giver! Gold coin gifts are Santa-approved. Second, and more importantly, you need to know...

How to Find a Lost IRA and What to Do With It

How to Find a Lost IRA and What to Do With It

Retirement accounts are often “lost” when people switch jobs, go through a major life change like a divorce, or transition among financial institutions. “There are more than 24 million ‘forgotten’ 401(k) accounts containing some $1.35 trillion in assets,” according to...

Start diversifying today

   1-866-646-8465

As one of the largest distributors of precious metals in the nation, U.S. Money Reserve gives you access to our highly-trained team.

U.S. Money Reserve Gold Kit and Global Gold Forecast Special Report Thumbnail
The Ultimate Guide

Free Gold Information Kit

Sign up now to receive the ultimate guide to gold ownership, unlock special offers, and more.