After a period of stagnation, the yellow metal should see resurgence in investor interest and move back on a path towards $2,000+/oz, according to strategists at TD Securities.
Key quotes
“The resumption of the downward trend in real rates along with a low cost of carry and concerns surrounding fiat currency debasement as skyrocketing debt makes appealing various forms of debt jubilee in some circles, likely mean gold price could test $2,000+/oz in the latter part of 2021.”
“The fact that some six million oz of annualized mining gold production is shutdown due to COVID-19 measures and lingering logistical issues making physical shipments extremely hard, will likely serve as additional catalysts moving the price toward $1,900/oz before the yellow metal reaches escape velocity toward a $2000+ handle next year.”
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