11/5/2022 0 Comments Precious metal prices![]() ![]() ![]() We see silver averaging 32.50 USD/Ounce and to peak at 40.00 USD/Ounce in 2021. 2021 could be another volatile trading year for silver. The expected mild global economic recovery in the second half of the year, could further benefit silver industrial demand, particularly in China.Īs we expect gold to move towards new all-time highs, investors might be tempted to diversify into silver. Some Gold/Silver ratio play may result in speculative silver buying accelerating the upside trend momentum. We expect the silver price to climb further in 2021 as gold is set to move higher. Silver was the top-performing precious metal closing the year at over 47% higher. We expect gold to hit a new all-time high at 2,300.00 USD/Ounce. More inflows into ETFs and increased physical demand, especially towards the second half of the year, shall comfort the upside trend. In the context of low global real interest rates, a slow recovery in growth, higher market volatility and a weakening USD, gold shall remain an asset of choice in investors’ portfolios as a safe heaven and insurance against disruptions. While the global economic recovery shows some positive signs, we will continue to face uncertainties especially in the first half of the year. We expect 2021 to be another bullish year. We also expect a recovery in the international commodity trade and increased physical demand especially in the second half of the year. The global economic instability, low yields, the risk for higher inflation, and more downside pressure on the USD remain some of the major factors supporting the well-established bull trend. Precious Metals Highlights for 2021Ģ021 shall be another year of growth for precious metals. Long-term conflict resolutions in the Middle East, an expected comeback for the United States of America to international negotiations and pacts, are some of the promising steps we expect to see in 2021. Geopolitics drivers for gold in 2021Īfter years of global geopolitical instability, 2021 displays comforting signs of stability. One of the key factors driving commodities in 2021 is our expectation for the USD to remain on the weaker side against most of the major currencies. The rate and speed of vaccinations will not be evenly distributed around the world, creating regional discrepancies in the level and speed of economic recovery. As the percentage of vaccinations across the globe increases, economic activity should return towards a more normal situation. Real interest rates are likely to remain close to historical lows for the foreseeable future. The global economy plunged into its worst recession since World War II as a result of the pandemic, and is expected to slowly recover, especially in the second half of 2021. The Key Drivers for Precious Metals Economics drivers for gold in 2021 ![]()
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