Analysts at Societe Generale are confident that gold will continue to rise in the first quarter of 2021 due to several factors: low interest rates, the weak US dollar, an increase in the number of assets with negative returns, an increase in the US government debt, and a strengthening yuan. But in the second half of 2021, gold may come under pressure due to the improvement in the global economy.

According to their forecast, the price of gold will set a new record of $2,340 per ounce. However, the average price of the precious metal at the end of the year will be at the level of $2,050 per ounce.

But already in 2022, gold could fall to $1,800 per ounce. The reason for this is the economic recovery to the pre-crisis level. Moreover, an effective vaccine against COVID-19 will definitely appear. In other words, the value of gold directly depends on the situation in the global economy which is strongly pressed by the virus.

Analysts at the Canadian bank CIBC agree that in 2021, the gold price will be able to demonstrate a new historical record. Experts base their opinion on the fact that the unprecedented printing of money to support the economy continues, which could positively affect gold. There is also an appetite for risk assets in financial markets amid news of several COVID-19 vaccines. Experts advise not to succumb to euphoria and think sensibly, as economic risks and uncertainty have not gone anywhere.

Meanwhile, gold futures for December delivery are trading at $1,808.13 per troy ounce. The support level is at $1,797.10 and the resistance level is at $1,875.00.

Silver for December delivery lost 0.80% to $23.175 per troy ounce, while copper rose by 0.29% to hit $3.3672 per pound.

The US Dollar Index, which measures the US dollar against a basket of six major currencies, lost 0.06% to trade at 91.907.