Why Some Mining Experts See Gold Reaching $2,050 To $2,250
PALM BEACH, Fla., Sept. 21, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Experts who follow Gold see more room for it to rise in both the short and long terms. First it was the pandemic that helped push its prices to all-time highs, and in the near future it may well be inflation that keeps it increasing. Gold, after a record year, is bound to see more gains in the medium and long-term, according to the CPM's Gold Yearbook. The CPM Gold Yearbook 2021 contains definitive and detailed statistics and analysis on the international gold markets. The pandemic has changed the world, making some of the existing problems even worse and setting gold up to benefit, the CPM Group said. "While the pandemic will eventually pass, it has left the world changed and has in fact compounded and worsened some of the factors that are supportive of gold prices," the CPM Group said. The biggest drivers that will support gold as the world reopens include sovereign and private sector debts, deficits, and ultra-loose monetary policies. An article in the Economic Times added that: "It continued: "After falling nearly 14 per cent in the first four months, assets of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, rose by nearly 30 tonnes in May, justifying the move in metal prices.". Active stocks in the mining markets this week include Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Barrick Gold Corporation (NYSE: GOLD) (TSX: ABX), Franco-Nevada Corporation (NYSE: FNV) (TSX: FNV), i-80 GOLD CORP. (OTCQX: IAUCF) (TSX: IAU), Newmont Corporation (NYSE: NEM) (TSX: NGT).
CPM Group continued with: According to CFTC data, speculators raised their long positions in COMEX gold and silver in the previous month. The prices may continue to move with a positive bias, supported by building inflationary pressures and expectations of a prolonged ultra-accommodative monetary policy from the US central bank. Investors will continue to watch upcoming economic data closely to keep a track of the post-pandemic recovery. Any future comments on inflation and interest rates by Fed officials would also be in focus since gold is used as a hedge against higher inflation. We continue to maintain our positive bias for an immediate upside towards $2,050, followed by $2,250. This year, they are expected to buy gold but wait for prices to soften on temporary dips before they step in as big buyers. This buying pattern is expected to have a different impact on prices than what was seen in 2020. Instead of rising sharply as investors chased gold prices higher as was the case in 2020, this year prices are likely to stay at elevated levels but could struggle to rise sharply as investors take a more cautious approach," the CPM Group said.
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