Gold Prices Jump 5% In December So Far; $2300/Oz Level Seen For 2021

In the November month, while we saw gold retreat in prices to 5-month low from all time high to $1745, prices have now moved higher after profit taking then by as much as 5% to Tuesday's price level of $1865 per ounce.

Back home also, on the MCX, gold prices are now trading above Rs. 50000 levels owing to support from international pricing.

Gold Prices Jump 5% In December So Far; $2300/Oz Level Seen For 2021

Factors supportive of gold pricing

Stimulus expectations from the US, Japan and Europe: US lawmakers face December 11 deadline to pass the stimulus

Low interest rate regime

Continuing weakness in dollar

Gold ETF situation in India on a month on month basis has remained flat while in the global shores there has been an outflow.

Another trigger that has supported gold price amid the pandemic is investors faith in the commodity.

Gold Price Outlook for the year 2021

So, as now the prices are likely to rise from here, experts suggest every dip in gold price should be taken as a buying opportunity and if gold is able to hold to $1920-$1950 level per ounce by December end, price of $2300 is seen for the next year.

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