The analysts said they expect gold prices to average around $1,820 an ounce this year, up 3% from last year’s average price.
The 2021 outlook comes as the gold market struggles to attract new bullish momentum after prices have been unable to hold gains above $1,900 an ounce.
“Although we expect policy rates and nominal yields to remain low and negative in real terms, further cuts or declines are unlikely.
research firm said that price pressures are rising as financial markets are awash in liquidity due to government and central bank stimulus policies.
After a slump last year, official sector purchases are also expected to recover strongly, as a growing number of countries so far in 2021 have already added to their gold reserves.
Meanwhile, the report expects mine supply to reach record highs in 2021, offsetting weak scrap supply.