(Kitco News) Why is gold down more than $250 from its summer record highs, and does it have more to lose? This week’s market rundown will look at why analysts say that the bull run is actually not over.
This week gold dropped below $1,800. There were a few triggers behind that move, including the rally in the stock market, some better-than-expected economic data, and positive vaccine news.
But the majority of analysts Kitco News spoke to this week said that they see gold stabilizing around the $1,800 level and project higher prices next year.
Australia and New Zealand Banking Group (ANZ) said that the vaccine news does not actually change the major drivers that took gold higher this year, citing real interest rates, inflation, and a weaker U.S. dollar as the triggers that will take gold to $2,100 next year. Meanwhile, CIBC said that it expects gold to average $2,300 in 2021. Read more…..
Chart of the Day
CNBC’s Steve Liesman, Allison Schrager, senior fellow at the Manhattan Institute, and Jim Paulsen, chief investment strategist at the Leuthold Group, join “Squawk Box” to break down the latest economic data, including initial unemployment claims for the week ending Nov. 21 and the second read on third-quarter GDP.