Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE

View
Metals: best friends of traders in 2021?

Metals: best friends of traders in 2021?

Information is not investment advice

Do you remember last December? Back then, there were halfway solved uncertainties related to the US-China trade deal and long-lasting disputes over the post-Brexit relations between the United Kingdom and the European Union. With plenty of this and plenty of that, the gold was still higher than in 2019. Now, let’s go back to the end of our officially confirmed worst year of modern history. Who thought that everything could be even more uncertain and trigger a slowdown of major economies? The outbreak of Covid-19 has messed everything up. It made the Fed start a new round of quantitative easing and pushed the US regulator to cut the interest rate close to zero. As a matter of fact, the king of reliability – the US dollar has weakened. At the same time, the king of stability – gold has surged to new highs. 2020 was indeed a magnificent year for metals, especially for gold. What do analysts expect from the upcoming year? Will the gold shine brighter?

Outlook for the gold

The worsening situation with new coronavirus across the globe pushed the yellow metal above the all-time high of 2011 and marked a new high at 2 074 in August.  Since then, the precious asset has corrected on the improving risk sentiment. On Christmas, December 24, it closed near the 50-day SMA at the key resistance of 1 880. The next near-term obstacle for buyers lies at the descending trendline at 1 900. The breakout of it will increase the chances of reaching 1 930 and 1 960. For sellers, key support points are placed at 1 820 (200-day MA) and 1 760.

XAUUSDDaily.png

Forecasts

Of course, one of the biggest questions for traders is whether the gold will make a new high or form a new downtrend. The answer depends on three main issues. Firstly, how successful and quick the distribution of anti-covid vaccines will be. The vaccination process has already started in many countries, but some vaccines have not been tested in a real environment and may provoke allergic reactions. Another issue is mutations of a new virus, which can be even more dangerous. Finally, the third issue is the economic situation in the biggest countries. If the economies recover quicker, the gold will fall down.

According to Capital Economics, the existing problems will still add pressure to the gold in 2021. As a result, the upside momentum will be limited by 1 900 level. As for Goldman Sachs, its potential target for gold lies at 2 300. The reason for that is the possibility of higher inflation after post-coronavirus recovery.

XAUUSDWeekly.png

Outlook for silver

Analysts turn their heads to the silver market, too. Silver has risen greatly from March’s lows at 11.28 to the 2013’s levels at 29.78. Since September, the metal has been consolidating between 25.6 and 23.5 levels. On December 24, the key resistance for silver lied at the descending trendline at 27.4. The next one is placed at 28.4. As for support, the first one was placed at 23.5.

XAGUSDDaily.png

Forecasts

According to the Canadian Bank CIBC, silver will rise as high as 32. Bank of America is bullish as well, as it sees silver jumping to 31! Analysts at Metals Focus also see silver prices pushing well above $30 an ounce next year. All in all, a bullish year for silver is expected.

XAGUSDWeekly.png

Conclusion 

It's not a secret that metals depend on the economic situation and risk sentiment. Keep in mind that if there is negative news on vaccines, coronavirus, or other disappointing events, the metals will likely rise. 

LOG IN

Similar

How to Stay Calm and Trade on Uncertainties

Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!

US Interest Rate Slowdown?

The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine…

Bewitching predictions for 2022

Hello from the far 2022! FBS analysts have used some magic to travel to the future and brought you some hilarious predictions.

Popular

What to trade on May 16-20?

Last week brought a selloff in markets. Some assets reached the most crucial support levels and are likely to reverse in a short term. Be ahead of trends and make the most out of this week!

China Shatters World Economy

A four-day lockdown turned out to be two months of complete isolation. Factories are frozen, supply chains are under heavy pressure, and the future is gloomy. Find out how to trade in times of crisis in this article!

Choose your payment system

Be on top of your game

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later