On Sunday night, the US Congress approved a $ 900 billion bailout bill, which is less than what some analysts and economists had expected.

And the gold market, struggling to stay above $ 1900, collapsed on Monday during the European session.

However, one market analyst said gold bulls should not give up, as the US economy will continue to need further support since the economic effects of the lockdowns will remain deep even in 2021.

Steve Dunn, head of ETFs in Aberdeen Standard Investments, said he expects gold to rise to above $ 2,000 an ounce next year.

"I believe that this will not be the last stimulus package since some of the problems that the economy faces will still haunt in 2021," he said.

At the very least, Dunn said that interest rates will not rise next year, which will continue to provide significant support to gold. He added that even without additional stimulus, low interest rates would affect the US dollar, and accordingly, the yellow metal.

Most likely, the bond market will be the biggest growth driver in 2021. And aside from that, the increasing global debt has already reached more than $ 18 trillion, a new record for the new year.

"We haven't heard much about the growing debt, but it's actually quite big and alarming," he said. "We're starting to see what fixed income investors are currently interested in. There are not many alternatives to the traditional fixed income portfolio. In this scenario, I think gold will get a lot of attention in 2021, since it is the best alternative when the yield on 10-year bonds is below 1%. "

Not only are nominal yields expected to remain low until 2021, but Dunn noted that once inflation starts to rise, real yields could fall even further into the negative zone, eventually driving gold prices higher.

"Whatever one may say, gold has a really positive outlook in 2021. We may even see gold reaching $ 2,000 again," Dunn said.