David

Bank of American neutral on gold price – no longer holding $3,000 target The possibility of three highly effective vaccines in 2021 has changed the landscape for the gold market, according to analysts at Bank of America Securities. In BoA's 2021 outlook presentation, Francisco Blanch, head of global commodities & derivatives research, and Michael Widmer, metals strategist at the bank, announced a significant shift in their gold forecast for 2021. The bank no longer expects prices to hit the $3,000…

Peak in gold price? Precious metal to drop below $1,650 in next two years, says Westpac Gold's record high of $2,070 an ounce was likely the peak, at least for now, according to Westpac, which sees gold dropping below $1,650 in the next two years. Risk aversion has peaked, and so has the gold price, Westpac senior economist Justin Smirk said in his November update. "2020 has seen a peak in risk aversion, central bank liquidity, and global uncertainty hence…

Gold’s big question: Can the bull market outlive a pandemic? Gold’s record-breaking bull market is facing an existential question after this month’s pharmaceutical breakthroughs: what happens to the rally once Covid-19 vaccines start rolling out?   Gold is viewed by many as the archetypal haven asset, inevitably driven higher in times of turmoil. By that logic, a beginning of the end of the crisis would signal a turning point for the rally. But the precious metal also serves as a…

Is gold price in a zero-sum game? Here's the catalyst needed to go higher Is the gold market stuck in a zero-sum game as the positive vaccine news is balanced out by high levels of anxiety due to the surging coronavirus cases? "Investors continue to reassess the risk of stricter containment measures against the optimistic prospects of a vaccine," said ING strategists. "This dichotomy may prove to be a zero-sum game for markets at the moment, and we could see…

Sentiment is mixed leading into the EU session Gold and silver are once again under pressure leading into the EU session. In the yellow metal, the stubborn consolidation low of $1848.84 is still holding but it seems vulnerable to a downside break. Silver also has a support level at a technical trend line but also the $24 psychological level is holding up the price this morning. Late yesterday and overnight much of the talk has been over the feud between…

Gold price ‘death cross’ – sharp drop signals are flashing warns Gary Wagner The 100-day and 50-day moving averages for gold have just crossed following months of a consistent differential, and this pattern is indicative of a "sharp drop" down in the gold price, said Gary Wagner, editor of the GoldForecast.com. “When the short term [average] moves below a longer term chart, it forms an X just like the Skull and Bones,” Wagner said. “Towards December of last year into…

Gold fund manager 'fully invested'; inflation, geopolitical risks to remain The gold market is experiencing a crosswind of economic forces, but the main tailwinds of inflation and geopolitical risks are still intact, said Sean Fieler, CIO of Equinox Partners. “I don’t think the Republicans are going to be aggressively in the business of cutting spending, they weren’t under the Trump Administration, I think it’s going to be hard to position themselves that way in a Biden Administration. On the other…

Miners are taking advantage of higher gold price, more projects kicking off in Q4 – Metso Outotec Mining companies are taking advantage of higher gold prices this year, especially when it comes to silver and gold projects, according to Metso Outotec. More new projects are starting to take off in Q4, Metso Outotec's President of North and Central America Giuseppe Campanelli and VP of metals sales for North and Central America Tim Robinson told Kitco News. "Our customers, especially on…

A 'sober' 2021 gold price target; say goodbye to 'phenomenal' drivers – HSBC's Jim Steel 2020 has seen a “phenomenal” inflow of gold-backed exchange-traded funds, fueling an investment-led rally, but while ETF inflows are still expected to be strong, 2020’s level of inflows would be hard to keep up. Jim Steel, chief precious metals analyst at HSBC, said that gold will average a price of $1,965 an ounce in 2021, owing to competing macroeconomic forces; accommodative monetary policy will continue…

These industries to skyrocket in growth from ‘boost in new policies’ The future lies in clean energy and clean transportation, and technology companies surrounding those themes will benefit investors, said Howard Marks, CEO of StartEngine, an equity crowdfunding platform. “Entrepreneurship is still a very good area for investment, anything to do with technology. I think green technology, which includes solar energy, renewable energy, electric cars, are going to take a big boost from the new policies of the Administration,” Marks…