close

Investors to keep gold prices sky high through 2021 as jewellers see demand drop

golf-bullion-generic.jpg

Gold investors from North America and Europe hoarding the precious metal are set to maintain the recent high prices throughout the coming year.

This is according to Refinitiv Metals Research’s recent quarterly report.

Much as they have during lockdown, investors will continue to stockpile gold bullion.

Story continues below
Advertisement

This will counteract the effects of a low demand for gold from banks and jewellers, Refinitiv said.

UK jewellers have been recommending their customers buy platinum jewellery over white gold throughout the pandemic, as gold prices eclipse the traditionally more expensive metal.

Refinitiv reported that gold jewellery sales in Asia, typically a strong market, have been weak due to this phenomenon.

By the year’s end Refinitiv predicted that gold sales via jewellers will drop by 1,327 tonnes (31%) before seeing a 9% rebound in the new year.

It also forecast that gold prices will average $1,890 (£1,443) an ounce in 2020.

This comes after Refinitiv reported that gold prices may be volatile in the weeks leading up to the US presidential election, with investors perhaps seeking security in gold investment.

The researcher concluded that the outcome of the election may not have too much impact on gold prices and the wider economy, but admitted a Biden victory may slow post-Covid recovery slightly.

Tags : Gold pricegold pricesrefinitiv
Sam Lewis

The author Sam Lewis

Leave a Response