What Is In Store For Gold In 2021?

Gold last traded at $1,879 an ounce. Silver at $25.79 an ounce.

NEWS SUMMARY: Precious metal prices rose Thursday in thin, pre-Christmas trading. U.S. stocks rose slightly as Wall Street tried to wrap up the holiday-shortened week on a high note.

Aslam/Forbes

"The precious metal is up nearly 22% year-to-date, but it has been under selling pressure for the past three days, as traders have been busy booking their profits as 2020 comes to an end. There is no doubt that this year has brought glory for gold traders as the gold price made an all-time high of $2,075 in August this year....

The big question for investors and traders is whether the gold price is going to make another record high next year....The answer is very much dependent on a few factors. Firstly, it is all about containing the coronavirus and any other future variant of these viruses... If the coronavirus situation doesn't come under control, traders will seek shelter in safe-haven assets, and gold prices will likely move higher.

Secondly, the economic data, the stock market, and businesses' actual health are completely out of sync. That is because the U.S. stock market is still sitting near its record high while enterprises are consistently forced to close.

Something that is surely going to influence the gold price is the trend in the dollar index, which is determined by the Federal Reserve's monetary policy stance."