Bargain hunting by hoarders, jewellers could send gold price up again

London

THE 2020 surge in investment and speculative holdings of gold is a mixed blessing for price prospects this year.

The reason is that investors have been taking profits after the heady price increase in 2020. They originally purchased gold because of the pandemic, geopolitical uncertainty, negative or negligible interest rates, monetary stimulus, inflation, large budget deficits and concerns about a weak dollar and other fiat currencies. These concerns remain despite vaccinations, but sentiment has changed.