The midweek brings with it the eye of the election storm, as things have settled into a holding pattern with neither candidate having their elections certified. This is causing uncertainty to linger as we wait for this political drama to come to a conclusion. Naturally, today’s news has plenty of bullish reports on gold. On the other side of the globe, India is seeing their best return on gold in nine years. Meanwhile, the COVID-19 vaccine rollout could have a major impact on the U.S. dollar—check out the Reuters news story below. That and more!

Let’s dig in…

Commentary
Could Gold Hit $2800 in 2021? Direct Bullion Thinks So

A British dealer in precious metals says the yellow metal price will ‘break new records in 2021,’ due to levels of uncertainty that will linger well into next year. This will fuel higher demand for gold. Despite a predicted 9% increase in production in 2021, Metal Focus expects gold to remain high, and above $2,000 per troy ounce. Blue Line Futures has forecast a ceiling of $2,500 by December 2021 and Goldman Sachs recently raised its 12 -month gold forecast to $2,300 per ounce. Far ahead of these projections, though, Direct Bullion says that its research indicates a gold price increase of as much as 40%, with the potential to hit $2,800 per troy ounce over the first six to seven months of 2021.

International
India See’s Best Return on Gold in 9 Years

Gold is in a broader uptrend in the country of India due to the coronavirus global pandemic along with changes in forex rates. Over the past 14 days gold has appreciated, taking its return Diwali 2020 to 32 percent compared to Diwali 19. This is the best Diwali-to-Diwali return for gold since 2011, when the yellow metal had surged 38 per cent compared to the previous year. Though optimism around a COVID-19 vaccine has brought gold about 11 per cent off an all-time high in August, gold is in a broader uptrend this year on account of rising coronavirus infections around the globe and changes in forex rates.

SEE CHART SHOWING HOW GOLD PERFORMED OVER PAST FEW YEARS DIWALI-TO-DIWALI

Price
Gold Price Hits First Loss in Four Sessions

On Tuesday, the yellow metal mellowed out, easing back after climbing over the last three trading sessions but failing to reclaim the key $1,900-an-ounce mark. Prices had posted gains in recent days despite news of progress on a COVID-19 vaccine, which would ordinarily serve as a headwind for the precious metal. “A softer dollar in recent days has alleviated some of the pressure on gold but it’s still struggling to pull itself considerably off its lows,” said Craig Erlam, senior market analyst at Oanda, in a market update. “The yellow metal found support around the $1,850-1,860 region, but it has since struggled to break back above $1,900.”

Commentary
Did COVID-19 Help or Hurt Gold’s Future?

Yes, the price of gold has surged up dramatically in 2020, however, central banks did not flock to invest in gold like they have in past times of uncertainty. What does this mean? Writers Rachel King and Victor Mendez-Barreira dive into the whys.

READ “Has Covid-19 made gold shine brighter?”

Latest News
Will the Vaccine Rollout Cause the U.S. Dollar to Drop 20%? Citibank Says Yes

The widespread distribution of vaccines to combat the coronavirus pandemic and ongoing monetary easing could cause the U.S. dollar =USD to weaken as much as 20% next year, Citibank said on Monday. “When viable, widely distributed vaccines hit the market, we believe that this will catalyze the next leg lower in the structural USD downtrend we expect,” the U.S. bank said in a research note. “Given this set-up, there is the potential for the dollar’s losses to be front-loaded, with the USD potentially falling by as much as 20% in 2021.” Moderna Inc said on Monday its experimental vaccine was 94.5% effective in preventing COVID-19 based on interim data from a late-stage clinical trial, becoming the second U.S. company in a week to report results that far exceed expectations.

Latest News
Gold Industry Struggles to Make Needed Industry Reforms

With a pandemic driving up gold prices and a looming Swiss vote over corporate responsibility, gold refiners are under increasing pressure to guarantee a clean supply chain. But they say they can’t do it alone, and that the Swiss initiative to involve the courts goes too far. Fears and finger-pointing hinder the reform efforts. READ MORE

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