Bloomberg Intelligence predicts that gold will be lucrative in 2021, and at the same time outperform US stocks.
Strategist Mike McGlone said the metal has rallied very strongly in 2020, therefore, a $ 2,000-an-ounce resistance will be a support for this new year.
To add to that, many factors could also trigger a sharp rise, one of which is how low or how negative the rates will be, along with rising debt-to-GDP ratios and quantitative easing.
And if demand for gold rises very sharply in the markets, its rate could definitely outperform US stocks.
In terms of data for 2020, McGlone cited Bloomberg's All Metals Index, which rose almost 21%, beating the record of the S&P 500 by about 3%.
If market volatility continues to increase this year, gold's growth will boost, even despite the fact that on Thursday, there was a decline in prices due to higher yields on US Treasury bonds. Aside from that, the prospect of more US stimulus limit losses as well.
The outlook for silver is also very positive.
According to McGlone, "silver will continue to rise in 2021, as it did in 2020. It's unique attribute, half precious and half industrial, should keep it among the main beneficiaries of the favorable macroeconomic backdrop".
"New highs for gold in 2020 should mean that it is a matter of time before similar moves will be seen in silver and most other metals," he added.
McGlone also noted that the path to $ 50 will be more sustainable this year than in 2011, with a new low set at $ 12.
"We see the metal moving along the same trajectory as after the financial crisis, towards $ 50 an ounce," he said. "There is a good chance that the 2020 low of about $ 12 will be as stable as the $ 8.50 price in 2008, which has not been traded since."
