Pandemic 'changed the world' and gold price will reap the benefits

Gold last traded at $1,730 an ounce. Silver at $25.14 an ounce.

NEWS SUMMARY: Precious metal prices traded mixed Thursday as upbeat jobs data boosted the dollar. U.S. stocks fell as the recent rally took a pause with investors reassessing the growth picture.

CPM Group/Kitco-- After a record year, gold is bound to see more gains in the medium and long-term...according to the CPM's Gold Yearbook.

The pandemic has changed the world, making some of the existing problems even worse and setting gold up to benefit, the CPM Group said.

'While the pandemic will eventually pass, it has left the world changed and has in fact compounded and worsened some of the factors that are supportive of gold prices,' the CPM Group said.

The biggest drivers that will support gold as the world reopens include sovereign and private sector debts, deficits, and ultra-loose monetary policies.

Governments around the world will struggle to reverse the fiscal policies introduced as a response to the pandemic, said the CPM Group, citing lackluster economic growth in coming years.

'This scenario positions gold well for further gains in the medium to long term,' the Yearbook stated. 'The pandemic has deepened these problems and will make it harder to reverse some of these issues, which will help to keep investors interested in the metal.'....

The use of gold as a portfolio diversifier is expected to grow this year, which should help the prices move higher....Central banks are projected to remain net buyers of gold in 2021, with about seven million ounces estimated to be bought."