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Strategists at UOB Group’s Quarterly Global Outlook noted the precious metal could advance to the key $1,800 mark per ounce in early 2021.

Key Quotes

“Amidst the uncertain economic times, gold is probably the only key commodity with a distinctive and clear positive outlook. All the key positive drivers remain in place. Global central banks continue their massive monetary policy easing, providing a strong and steady tailwind for gold. Adding to the tailwind, safe haven allocation demand remains strong amidst the on-going economic uncertainty. As such, the question for gold is not one of whether the recent strength is sustainable? This more pertinent question for gold is how strong the rally will be?.”

“Overall, we maintain our medium to longer term gradual positive outlook for gold. We forecast gold at USD 1,700 / oz in 3Q20, USD 1,750 / oz in 4Q20, USD 1,800 / oz in 1Q21 and USD 1, 850 / oz in 2Q21.”