Analysts project that gold will remain in its current price range for the rest of 2021, but next year, when interest rates start to increase, it, along with silver, will start to skyrocket.
BMO Capital Markets said their 2021 forecast for precious metals remains the same, but the forecasts for 2022 and 2023 have been lowered.
To be more specific, gold should be around $ 1,815 an ounce this year, with little change from the previous forecast.
This is because this year has not been a good year for gold, not to mention there was an outflow of prices in ETFs.
And most likely, prices will continue to decline next year, below $ 1,800. It should average $ 1,731 per ounce, then in 2023, will further drop to $ 1,630 per ounce, which is 6% below the previous estimate.
As for silver, BMO Capital Markets see better potential, so they raised their 2023 forecast. They also believe that silver prices will be around $ 26.80 an ounce this 2021.
Silver will average around $ 25.80 an ounce next year, down 0.2% from the previous forecast. However, by 2023, there is a possibility that the price will be around 24.30 an ounce, slightly higher than their previous estimate.
Analysts hope that demand for silver will continue to grow, as the global economy recovers. BMO said they are generally more optimistic about non-ferrous metals than precious metals because of growing industrial demand. In fact, almost everyone agrees that by the middle of this decade, the world will face a major copper problem that needs to be addressed.
