01.12.202012:05 Forex Analysis & Reviews: Gold might not succeed in reaching $ 3000 high

There are a lot of predictions for the gold's price next year, which were mostly positive. However, some experts assess the situation on the precious metals market more realistically, believing that it is almost impossible for gold to reach the level of $3000 for 1 ounce and above.

This week began with the gold showing a downward trend. Thus, the market is worried of such a reversal of almost 180 degrees, ignoring the upward trend of recent months. Experts fix the correction of the precious metal, fearing that the negative mood will continue.

It can be recalled that gold has shown a stable upward trend over the past two years, from August 2018 to November 2020. Two years ago, the price of gold did not exceed $ 1,180 per ounce, although it rose to a record $ 2,000 from time to time. Yesterday, it declined to a critical $ 1,765 per ounce, which greatly worried the market. Today, the yellow metal slightly rose and overcame this level. So currently, it is trading at $ 1986 per ounce, not going to yield and strive for new peaks.

Currency strategists at Bank of America believe that next year will be tough for the indicated metal. The high probability of the release of vaccines against COVID-19 exerts pressure on its quotes. Earlier, BoA emphasized that this factor significantly influenced the gold's decline. Given the current conditions, experts have adjusted their previous forecast for gold to the downside. Now, the Bank of America believes that it will be unlikely for gold to rise to $ 3000 per ounce. Based on specialists' calculations, its price will move around $ 2063 per ounce.

On the other hand, some experts are positive about the short-term prospects for gold. Bank of America believes that the precious metal will still overcome the barrier of $ 2000 per ounce amid monetary stimulus from central banks. Currency strategists at Citigroup bank also expect it to rise to $ 2,500 per ounce.

They believe that a number of factors contribute to the rise in the price of precious metals in 2021, primarily the existing quantitative incentive (QE) program, which is supported by regulators. Experts say that this allowed gold to grow throughout 2020. Other factors such as the total weakening of the USD, high risk of inflation, a sharp decline in yields on key assets and strong volatility in financial markets also contributes to the price growth of gold.