Gold prices plunged to their lowest in two months to below $ 1,800 against the rallying US dollar on Thursday, and fell 2.8% for the week so far as US jobless claims came lower than expectations.
In the meantime, global interest rates rose sharply, with inflation, amid new expectations of a strong economic recovery due to mass vaccinations.
Gold price forecasts for 2021 now range from $ 1,650 to $2,300 in today's annual forecast competition from the LBMA Bullion Market Trader Association.
The average gold price is expected to reach $1974 an ounce during 2021, as central banks and governments still continue their stimulus, which causes unprecedented deficits.
“Gold stopped its rally 3 weeks ago when 10-year US Treasury yields accelerated above 1%, as Investors started economic expansion, stimulated by fiscal and monetary policy," said BNP Paribas.
“This economic expansion through debt should have supported gold, but instead it suffered from a lack of investor interest," BNP added.
China, the number one gold consumer, is set to witness the week's gold rush in its Lunar New Year on Friday, after prices dropped to a month low.
Follow the latest news on Google News
