Crucial to investors’ gold outlook: the direction of what are known as real yields, or the returns on bonds when adjusting for inflation. He expects real yields to fall further and gold prices to finish 2021 at $1,900 an ounce. A strong recovery, meanwhile, could spur a climb in real yields and hurt the value of gold. “If real yields are going up, why would you be buying gold?" Since gold is bought and sold with dollars, a weaker dollar makes gold cheaper for foreign investors.
Source: Mint December 31, 2020 22:52 UTC