Good News For Gold Bulls: Big Banks Make Case For Higher Gold Prices

Good News for Gold Bulls: Big Banks Make Case for Higher Gold Prices

These 3 Banks Are Convinced Gold Prices Will Remain Above $2,000 in 2021 & Beyond

Gold investments have done really well so far. If you bought the yellow precious metal in the past five years, you could be sitting on hefty gains. But this may not be all; much higher returns could follow.

Even the big banks say the bull run in gold isn’t done yet. Each day, some big bank with global operations comes out in favor of owning the precious metal.

Goldman Sachs Group Inc (NYSE: GS), is bullish on gold. The bank thinks gold prices could hit $2,300.00 per ounce in 2021. Analysts at the bank said this: “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 E.M. retail demand continues to recover.” (Source: “Goldman Sachs Holding Firm with $2,300 Gold Price Forecast as Inflation Pressures Build,” Kitco Metals, Inc., November 13, 2020.)

A managing director at Royal Bank of Canada (NYSE: RY) Wealth Management, George Gero, said that, after the U.S. election, traders would be looking at “stimulus legislation, inflationary prices [and] large debts, so gold can resume the upward trend towards $2,000.” (Source: “Gold futures Climb for the Session, but Lose 0.8% for the Month,” MarketWatch, October 30, 2020.)

Canadian Imperial Bank of Commerce (NYSE: CM) is also bullish on gold, expecting the price of the precious metal to be above $2,000 until 2024. The bank recently said, “We forecast real rates, the primary driver for gold prices, to remain under pressure for the next several years as governments tackle heavy debt loads and focus on reducing unemployment numbers. The US Fed Reserve will likely reiterate a ‘lower for longer outlook’ particularly in light of the global economic backdrop, which we continue to view as positive for gold.” (Source: “Gold to Rally Towards $2300 in 2021 – CIBC”, FX Street, November 25, 2020.)

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Disclaimer: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and ...

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