According to commodity analysts at Bank of America (BofA), gold price is likely to move higher to the $1900 mark by the year-end, averaging around $1800 in 2021.
Key quotes (Kitco.com)
“Expects gold prices could push to $1,900 an ounce at the end of the year. However, it expects the average price to come in around $1,800 an ounce in the final three months of the year.”
"The global macro backdrop remains uninspiring and continues to discourage investor inflows into gold."
"Breakevens and nominal rates have not shown a persistent trend higher or lower in recent months and have therefore been too choppy for the gold market. To that point, real rates, usually the key driver of gold, have been on a round-trip this year, and are now trading back at the levels seen in January."
"As the US economy accelerates, inflation should pick up; with markets continuing to factor in a benign inflation outlook, any overshoot or re-pricing here could ultimately support the yellow metal. That said, the immediate focus will likely remain on tapering, so gold looks to remain unattractive to investors for now.”
