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The gold price is likely to continue its upward trend through 2021 and could rally as high as $2,200 an ounce, Fahad Tariq, Precious Metals Analyst at Credit Suisse.

Key quotes

“Gold will be susceptible to Powell’s outlook on the economy and interest rates. He added that the rise in bond yields indicates that the market could be pricing in a rate hike as early as mid-2023.”

“Gold could get a boost if Powell talks about the potential to implement a yield curve control program to cap rising bond yields.”

“Overall, the real rate environment and Fed stance remain supportive of gold prices, but the key to watch will be if yields continue to rise and of course, if the US Fed does, in fact, change its dovish stance – we think this is unlikely based on recent commentary highlighting higher employment as the priority vs. preventing inflation.”

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