The price of gold may rise to $2,000 by the end of 2021 – - TDS

02.07.2020 21:00
The price of gold has been steadily rising since mid-March, reaching multi-year highs around $1,800, and according to the commodity strategy group at TD Securities, the trend may continue with the global economy picking up:
"The spot price of gold fell below $1.770 per Troy ounce after the release of stronger-than-expected data on non-agricultural employment in the US (+4.8 million). a Very strong positive response from the equity market is likely to attract more capital to risky assets at the expense of gold, at least initially. ... However, gold is now recovering back to above $1.770 per Troy ounce, and is likely to show good results in the third quarter.
The USD is weakening and real interest rates should fall as inflation expectations continue to rise. Despite strong employment data, wages are lower, the share of the economically active population is near lows, and the economy will operate below potential output for some time, which requires large, debt-funded fiscal stimulus and low monetary policy rates for the foreseeable future.
Thus, we are happy with our positive view of gold, and continue to expect the price to move towards $2,000 per Troy ounce by the end of 2021."

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