FxPro Analysts: Gold Strengthens Its Position
Gold is again a favorite among investors. Prices for this precious metal are strengthening after a massive correction for several months. On December 1, gold rose to $ 1,870, having won back positions for the entire November. According to FxPro analysts, the reason for the correction was reports amid successful trials of the coronavirus vaccine, due to which the demand for the precious metal dropped significantly.
The recovery in the value of gold was facilitated by news about a possible compromise between Republicans and Democrats (we are talking about a stimulus package).
“Gold prices rose amid falling yields on government bonds. Investors realized that the coronavirus will not disappear anywhere, so interest rates will remain low for a long time”, - said analysts at FxPro.
However, the risks to the European economy posed by the unfinished Brexit deal remain. At the same time, advances in the use of coronavirus vaccines and recovery in business activity are limiting the rise in precious metals prices. Monetary policy in 2021 promises to remain soft, according to experts at FxPro. It is expected that the precious metal will be able to reach $ 2,000, but will not be able to cross the $ 3,000 mark, which was predicted earlier.
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