Golden opportunity to sell gold for those who bought gold in the past. Gold posted the biggest annual advance in a decade. It gains this month with the dollar's decline to the lowest since pandemic hit the world.
Bullion hit a record in August as investors are afraid of an unexpected wave of stimulus by governments and central banks can lead the value of dollars to lowest.
Morgan Stanley forecast gold and other precious metals are under pressure because, financial market is coming to normal and longer maturity of bond yields are rising. On the otherside HSBC observes gold prices are climbing continuously to an uncertain level.
Much of gold’s performance next year will depend on whether the eventual return to normality is outweighed by ongoing stimulative policies. Led by Chair Jerome Powell, the U.S. Federal Reserve has signaled that its ultra-easy monetary conditions will last throughout 2021. Efforts to pass further fiscal stimulus through the Senate have hit another roadblock.
Weaker U.S. dollar and the low real interest rates assist in gold price increase. As per Bloomberg; as vaccines are distributed around the world, said Vasu Menon, executive director, investment strategy, at Singapore-based Oversea-Chinese Banking Corp. With the lower-for-longer Fed, as per him and he mentioned that “it is too early to throw in the towel on gold,”
As per the sources Gold increased to 0.2% to settle at $1,898.36 an ounce on last Thursday. That’s up 6.8% for the month, and 25% higher for 2020,it is the biggest improvement since 2010. Futures for February delivery on the Comex rose 0.1% to settle at $1,895.10 an ounce. The Bloomberg Dollar Spot Index had a third straight quarterly loss.
Spot silver also has increased by 48% this year, meanwhile palladium possessed a fifth consecutive yearly gain, with an increase of about 26% in 2020. Platinum price raised by 11% for the year.
Sources: https://www.bnnbloomberg.ca/gold-heads-for-best-year-in-a-decade-with-dollar-on-the-ropes-1.1542491
By sasi Vicknes
