HH Record Gold Prices In 2021

Gold is winding up to set new all-time high record prices next year.

I know it may not feel that way for some right now, with gold correcting and consolidating since early August.

Still, the last 4 months have been productive. By now gold has worked off most of the excess bullish sentiment its market had built up. Gold’s huge 38% gain between March and August was exciting, but not entirely sustainable.

A correction from that point was likely, as most who’d wanted to buy had bought. Unfortunately, many did so in the last month or two of that rally. When gold retreated, those who saw some or all of their gains evaporate, and lacked conviction, became sellers.

But now most of that sentiment has rebalanced along with declining volumes. However, gold remains in its early days of a solid, multi-year bull market. The fundamentals are only becoming more supportive. And gold prices remain near all-time record highs in every existing currency.

The outlook could hardly be more bullish. And I expect we will see new record high nominal gold prices in every major currency next year.

Gold Highs Around the World

One of the hallmarks of a secular gold bull market is its performance in all currencies. When gold keeps establishing new highs, then it’s a key indicator of gold’s ongoing strength.

Here’s a look at gold’s performance in the world’s most commonly used currencies for perspective.

(Click on image to enlarge)

(Click on image to enlarge)

As you can see, over the past ten years, which includes gold’s peak in many currencies back in 2011, gold established a record high this year in every single one.

It’s true that it has retreated in recent months, but that’s just normal ebbing that comes after flowing. Expecting gold to rise in a straight line is simply unrealistic.

Like I’ve said many times, more stimulus is coming. Businesses are hurting, and unemployment remains stubbornly high. Fed Chair Powell’s comment in June that “…we’re not even thinking about thinking about raising rates…” underscores that low rates are here to stay.

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