On this Tuesday, we look at gold—both the latest news and its 2021 forecast.

We also have an article that looks at a possible bullish run on gold mining stocks that are doing well now and should continue to experience “good times” next year. The miners have been benefiting from gold prices since the pandemic began.
Plus, we have some news on central banks gravitating toward digital currencies (some are already using them), and China's gold imports for November.

Alright, let’s now dig in…

Stock Market
Good Times for Gold Miners Should Continue in 2021

The good times for gold miners are expected to continue next year, especially for those that are able to tighten spending and increase returns to investors. The rally in gold prices has helped miners expand their margins and generate record levels of free cash flow, allowing many to pass on profits to shareholders already, Scotiabank analyst Tanya Jakusconek said. “With miners’ balance sheets in great shape, we believe investors will benefit from much higher dividends over the coming years,” Jakusconek wrote in a note to clients. Kinross Gold Corp., for example, offers “particularly compelling value,” as long as it continues to demonstrate sustainable cash flow over the coming quarters.

Commentary
One More Rally from the Gold Market is Coming (in 2021)

Gold prices are struggling to push back above $1,900 an ounce ahead of the new year. According to one bank, the precious metal can generate enough momentum for one more push above $2,000 an ounce before the market runs out of gas by the second half of the year. In his year-end forecast, Harry Tchilinguirian, head of commodity research at BNP Paribas, said that he sees gold prices peaking in the second quarter next year, averaging $2,010 an ounce. The analyst is relatively neutral on gold for the year, forecasting an average price of around $1,945.

Commentary
Here’s Why the Central Banks are Moving Toward Digital Currency

The People’s Bank of China was the first central bank to roll out a digital currency. The digital yuan recently got a boost when China’s biggest online retailer announced it has developed the first virtual platform to accept the Chinese digital currency. Digital currency is nothing more than a virtual banknote or coin that exists in a digital wallet on your smartphone instead of a billfold or a purse. Digital currencies issued by central banks are backed by the state, just like traditional fiat currency.

International
China Gold Imports Surge in November—Here’s Why

China's net gold imports via Hong Kong in November surged about 82% from October, Hong Kong Census and Statistics Department data showed on Monday. Net gold imports via Hong Kong to China, the world's top consumer of the metal, stood at 3.283 tons in November, compared with 1.807 tons in October, the report showed. Total gold imports via Hong Kong rose to 8.837 tons from 6.109 tons in October.

Economy
USDX Countdown to Short Term Surge Could Affect Gold—Here’s How

After awakening from its slumber last week, the USD Index may be in the early innings of a short-term breakout. Bursting with energy, the dollar basket closed (on Dec. 22) above its declining resistance line (although more data is needed to confirm a larger move). And to quote Francis Bacon, because “we rise to great heights by a winding staircase of small steps,” Tuesday’s ‘small step’ may be the beginning of an epic comeback. In this week’s early trading, the USDX moved lower and then rallied back up, after touching its previous resistance line, which now appears to have turned into support.

Latest News
Gold Reaches One-Week Peak While Trump Signs Stimulus and Dollar Falls

The price of gold grew by as much as 1.3 percent on Monday, as the US dollar slipped following President Donald Trump’s signing of a long-awaited $900 billion coronavirus stimulus package. The yellow metal was trading at $1,876.10 per ounce as of 11:38am GMT, after earlier hitting its highest since December 21 mark of $1,900.04. Bullion is set to post the first monthly gain since July. Over the whole of 2020, gold has benefited from a steady weakening of the US currency since it peaked in March, as well as from unprecedented fiscal and monetary stimulus. “The only thing that is helping gold at the moment is because the dollar is lower and yields are not so much higher,” ABN Amro analyst Georgette Boele told Reuters, adding that “we have holiday season and there’s no liquidity.”

Thanks,
Gold Silver Central