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It’s that time of year again! Where Gold and other precious metals investors and traders start to wonder which direction the price of Gold will go in 2021. With the new year right around the corner, everybody is gearing up and looking all of the internet for potential ideas and predictions for Gold in 2021.

So what does 2021 hold for Gold and Silver prices? Well Gold hit it’s all time high in 2020, with prices peaking at $2074.88 (USD/Oz) in August. This massive growth for the yellow metal resulted from a few key factors. These include: COVID-19, stock market crash, and most importantly inflation.

2020 was not the greatest of years to say the least, the coronavirus being a global pandemic caused countries to move into states of emergencies, people losing their jobs, businesses being forced to close, families losing loved ones, and many more unprecedented events. As a result, the stock market experienced a dramatic dip, which although it recovered from, it was through the help of the federal reserve printing dollars from scratch to stimulate the economy.

All these factors taken into consideration is what resulted in Gold having an immense level of growth this year. Gold is widely referred to as the ‘safe-haven’ currency, hence why during unprecedented times and a weaker economy, Gold and other precious metals prices soar. We can see a clear correlation between Gold and the economy’s performance. When the coronavirus vaccine was announced, it brought hope that the economy would return back to normal. This immediately resulted in a fall in the precious metals market.

Which raises the question for 2021, as the COVID-19 vaccine is released and the virus is hopefully eradicated, the economy will recover. So what will happen to Gold prices in 2021? There are possibilities that prices may fall, however there are also possibilities the prices will continue to rise. There is a lot of uncertainty in the economy. History substantiates the claim that this sort of uncertainty regarding the economic landscape can be bullish for Precious Metals.