Poll Forecasts Increase in Price of Gold Before Pl
Post# of 45
(Total Views: 175)
Posted On: 08/09/2021 5:34:41 PM
Poll Forecasts Increase in Price of Gold Before Plateauing in 2022
Last week, Reuters conducted a poll with results predicting that the price of gold would average slightly above its present level of $1,830 per ounce for the remainder of this year before declining in 2022, as central banks begin to tighten their monetary policies and the global economy recovers.
The price of this precious metal, which is historically considered to be a good store of value and a safe haven by investors, hit record highs of more than $2,000 per ounce at the onset of the coronavirus pandemic before dropping as economies reopened.
Carsten Menke, an analyst from Julius Baer, stated that the safe-haven demand for this particular metal would fade as inflation became temporary and global growth recovered. Central banks may also boost returns on government bonds from the present low levels and raise interest rates, which would make gold less attractive as it offers no yield.
However, in the short term, the metal’s prices are supported by factors such as the dollar’s potential to weaken as markets rebound and as a recovery in the demand for gold jewelry gathers steam. A weaker dollar also makes dollar-priced bullion very affordable. A recent increase in inflation may also prompt more investors to buy gold, often considered to be an inflation hedge.
According to median poll responses obtained from nearly 40 traders and analysts, gold’s average price in this year’s third quarter will average $1,835 per ounce before increasing slightly to $1,841 in the last quarter of this year. The poll found that for the full year, the metal’s price will average $1,812 per ounce, while in 2022, the average price of gold will drop to $1,785 per ounce.
These forecasts are a bit higher than those found in a similar poll that was conducted earlier in April. This poll predicted an average price of $26.50 per ounce of silver for 2021, which is slightly above its current $25.50 price, noting that the average price would drop to $25 in 2022. Silver, like gold, is also considered to be a safe haven asset, despite its wide applications in various industries. Standard Chartered analyst Suki Cooper stated that silver was well positioned to benefit from the electrification process, given its use in solar panels.
As countries strive to decarbonize their economies and meet their zero-emission targets, more are replacing their use of fossil fuels with technologies that utilize electricity as a source of energy. Those better forms of energy require ample supplies of silver and other green-energy metals, which firms such as First Energy Metals Ltd. (CSE: FE) (OTCQB: FEMFF) are poised to supply for decades to come.
NOTE TO INVESTORS: The latest news and updates relating to First Energy Metals Ltd. (CSE: FE) (OTCQB: FEMFF) are available in the company’s newsroom at https://ibn.fm/FEMFF
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Last week, Reuters conducted a poll with results predicting that the price of gold would average slightly above its present level of $1,830 per ounce for the remainder of this year before declining in 2022, as central banks begin to tighten their monetary policies and the global economy recovers.
The price of this precious metal, which is historically considered to be a good store of value and a safe haven by investors, hit record highs of more than $2,000 per ounce at the onset of the coronavirus pandemic before dropping as economies reopened.
Carsten Menke, an analyst from Julius Baer, stated that the safe-haven demand for this particular metal would fade as inflation became temporary and global growth recovered. Central banks may also boost returns on government bonds from the present low levels and raise interest rates, which would make gold less attractive as it offers no yield.
However, in the short term, the metal’s prices are supported by factors such as the dollar’s potential to weaken as markets rebound and as a recovery in the demand for gold jewelry gathers steam. A weaker dollar also makes dollar-priced bullion very affordable. A recent increase in inflation may also prompt more investors to buy gold, often considered to be an inflation hedge.
According to median poll responses obtained from nearly 40 traders and analysts, gold’s average price in this year’s third quarter will average $1,835 per ounce before increasing slightly to $1,841 in the last quarter of this year. The poll found that for the full year, the metal’s price will average $1,812 per ounce, while in 2022, the average price of gold will drop to $1,785 per ounce.
These forecasts are a bit higher than those found in a similar poll that was conducted earlier in April. This poll predicted an average price of $26.50 per ounce of silver for 2021, which is slightly above its current $25.50 price, noting that the average price would drop to $25 in 2022. Silver, like gold, is also considered to be a safe haven asset, despite its wide applications in various industries. Standard Chartered analyst Suki Cooper stated that silver was well positioned to benefit from the electrification process, given its use in solar panels.
As countries strive to decarbonize their economies and meet their zero-emission targets, more are replacing their use of fossil fuels with technologies that utilize electricity as a source of energy. Those better forms of energy require ample supplies of silver and other green-energy metals, which firms such as First Energy Metals Ltd. (CSE: FE) (OTCQB: FEMFF) are poised to supply for decades to come.
NOTE TO INVESTORS: The latest news and updates relating to First Energy Metals Ltd. (CSE: FE) (OTCQB: FEMFF) are available in the company’s newsroom at https://ibn.fm/FEMFF
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
(0)
(0)