Gold has symbolically soared in price on the last day of 2020, trading data shows, with overall quoted prices of the precious metal jumping by more than 20 percent this year, showing record growth for the past decade.
You'd be wise to keep an eye on spot gold through Thursday's close.— TF Metals Report (@TFMetals) December 28, 2020
If spot gold can finish the week above $1885, it will record its third, consecutive all-time high quarterly close.
This would be a significant and noteworthy streak to carry into 2021. pic.twitter.com/ZcI2lHvIIU
Spot gold was down 0.2 percent at $1,890.25 per ounce by 0801 GMT, but was up more than 24 percent for the year. US gold futures gained 0.2 percent to reach $1,897.60.
As of 8.28 Moscow time, the price of the February gold futures on the New York Comex exchange grew by 0.02 percent, or $ 0.45 - to stand at $ 1,893.75 per troy ounce.
Metals Year to Date performance. Courtesy of @KatusaResearch.— JK (@JK09472322) December 25, 2020
Commodities bull market looking good. The precious metals bull market is always better when all the commodities are moving up together.#ironore #silver #coal #copper #zinc #gold #nickel #uranium #palladium pic.twitter.com/myH0IHkbzN
In other precious metals, silver futures for March rose 0.14 percent to $ 26.605 an ounce. Platinum dropped 0.2 percent to $1,063.39 per ounce but registered a 10 percent growth in 2020.
According to data for 2020, quoted gold prices increased by 21.7 percent, in a record surge since 2011.
In January, the cost of the precious metal was at around $ 1,600 per ounce. From March to July, quotes rose rapidly on the first COVID-19 wave, and in early August, gold rose in price to $ 2,069.4, overturning a historical record.
Prices for precious metals received additional impetus as the US Federal Reserve System and the Bank of England unexpectedly cut the key rate twice in March, resulting in a depreciation of the dollar.
Dynamics of Gold Prices
The dollar and inflation will remain the main factors driving the dynamics of gold prices in the future, according to chief global market strategist at Axi Stephen Innes.
“The dollar is going to weaken quite precipitously until Q1, giving gold a clear runaway to do well right out of the gates next year,” said the analyst, who was quoted by Reuters; he added that the yellow metal could reach $2,000.
“Gold will continue to be one of the best beneficiaries of the dollar’s weakness so expect to see a retest above $2,000 in the upcoming weeks,” according to Hussein Sayed, chief market strategist at FXTM, in a Monday note.
Commodities broker Anna Stablum of Marex Spectron echoed the optimistic chorus of forecasts, saying:
“We will see an overall price surge across metals at least in the first half of the year (of 2021). Money is still trickling through the global economy.”
As coronavirus vaccines and trillions of dollars’ worth of fiscal relief to cushion the blows of the pandemic are anticipated to boost investment and spending in 2021, Stephen Innes summed up:
“It’s been a tumultuous year for the commodity market, as the oil meltdown in March changed how we measure and gauge risk in the entire commodity sphere.”