The CEO of Kuwait Bullion Group Rajab Hamed said on Monday that there are many reasons that may push the price of gold to rise again, including coronavirus relief packages and the ongoing pandemic, which prompts investors to search for safe havens such as gold.
Hamed predicted another rise in gold as the new US President Joe Biden settles into office and makes his policy clear.
The fluctuation of the dollar and uncertainty around the values of the next US stimulus package could also contribute to the rise of gold prices, he said.
He predicted gold to record US$ 1,900 by the end of the first or second quarter of 2021.
Hamed also mentioned that there are several reasons for the recent decline in gold prices, including the increase in nominal returns against background of strong unemployment aid and the rise of the US dollar.
The gold exchange witnessed the best performance for gold two weeks ago, as gold touched US$1,875.
Abdul Azim al-Amawy, research director at Dubai Bullion Group, predicted that inflation will be more related to gold price trends during the current year as a result of huge stimulus plans in America and around the world.
Amawy said that the US Federal Reserve’s statement this week will have a significant impact on gold prices, as one of the important indicators that will be relied upon.
Edited translation from Al-Masry Al-Youm
