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The US-based ratings agency, Fitch Ratings, announced upward revisions to its gold price forecast for 2021 and 2022, in its updated outlook.

Key takeaways

“Fitch Ratings has revised some of its metals and mining price assumptions as prices for many commodities will benefit in the short term from returning demand while the supply response remains slow and inventories are running low.”

“Fitch has increased its price forecast for 2021 from $1,400 to $1,600 an ounce.“

“Sees further gold weakness in the next few years, projecting $1,400 for 2022 and $1,200 for 2023.”

“We have raised gold price assumptions for 2021 and 2022 on increased demand due to investment flows and central bank purchases. We believe that prices will moderate in the medium term to an equilibrium of USD1,200/oz.”

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