With a good amount of fear, uncertainty, low interest rates, the Federal Reserve’s balance sheet expansion, and understated inflation, gold could be setting up for another breakout. Analysts at Goldman Sachs and Citi, for example still see gold above $2,000 in 2021.
According to Business Insider, “Goldman also expects demand for gold to strengthen across emerging markets. Chinese and Indian gold demand ‘already displays signs of normalization,’ and the likelihood of a Biden administration taking a softer stance on trade policy should further support the rally.”
Others see gold as high as $4,000. “It’s quite easy to see gold going to $4,000,” Frank Holmes, CEO at U.S. Global Investors. “We’ve not seen this level where central banks are printing money at a zero interest rate. At zero interest rates, gold becomes a very, very attractive asset class.”