The research firm recently updated its gold forecasts for the second quarter, and it expects prices to average the second quarter at around $1,806 an ounce.
Murenbeeld & Co doesn’t expect gold prices to rise back above $1,900 an ounce until the first quarter of 2022 and the analysts don’t expect prices to hit a new all-time high until the second quarter of next year.
Schieven added that there is still a lot of uncertainty surrounding the path of the pandemic; it’s not a given that the current pace of the recovery will be sustainable, she said.
You can also see it in other essential commodities: copper prices, lumber prices, food crisis are all really rising.
Schieven added that the rise in commodity prices is very concerning for long-term inflation pressures.
While inflation appears to be the biggest factor to drive long-term gold forecasts, Schieen said that it is not the only factor.
However, on the downside, Schieven noted that along with an improving economy, the gold market continues to face tough competition with bitcoin.