InvestorQ : How do you see the price of gold during the current year?
Khushi Patel made post

How do you see the price of gold during the current year?

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Dhwani Mehta answered.
6 months ago
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If you thought that the gold price correction will last through the next year, then think again. Consensus estimates are betting on another fantastic year for gold prices in 2021. The price estimates for gold continue to be in extremely optimistic territory. Consensus estimates peg gold prices at above Rs.63,000 per 10 grams in 2021 or even higher.

What could be the driver for gold prices? it is estimated that the fresh stimulus measures initiated by the US to boost the economy could weaken the US Dollar. It may be recollected that during the year 2020, gold had touched a peak level of $2075/oz but later corrected about 15% from peak levels after a revival in growth promised good times for equities.

Gold normally has an inverse relation to the US Dollar. With the dollar likely to weaken, gold could benefit. Physical demand for gold has been weak in India and China. While that is expected to recover, that may have limited impact on gold prices. What could really impact gold prices is the robust demand from ETFs for gold as an asset class.

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