Why Forecasts for Gold Prices May Be Predicting a Rise This Year Due to Weakening Dollar

PALM BEACH, Fla., Jan. 27, 2021 /PRNewswire/ -- Since it January of a new year, it's time for Wall Street analysts and experts to chime in on predictions for the coming year, in stocks, bonds and, of course, metals… such as gold.

The projections can be based on similar historical occurrences, where what happened before should happen again because when the present circumstances existed before 'this is what happened". They can go back several years of even decades. Other viewpoints point to situations that are viewed as well observed "If" "Then" rules. (i.e., IF this happens, THIS is the result").  Some analysts from both these viewpoints have looked into their crystal balls and have projected that gold will hit $2,300 in 2021.

Here are some examples.  An article on Yahoo relied upon its belief that the Dollar will weaken in 2021. The article mentioned: "We are in a similar setup to the post-trendline breakdown of gold in 2002/2003. Consequently, I believe the dollar is on the verge of an accelerated decline towards 80. The weakening dollar should push gold higher into April/May 2021 before the next 6-month cycle correction. In 2002/2003, the US was coming out of recession, just like now. The recent $900-billion relief package will not be the last. I expect one or two more programs next year – this should continue to deflate the dollar and push hard assets higher."  Active stocks in the mining markets this week include First Majestic Silver Corp. (NYSE: AG), Golden Independence Mining Corp. (OTCQB: GIDMF) (CSE: IGLD), Eldorado Gold Corporation (NYSE: EGO) (TSX: ELD), Alamos Gold Inc. (NYSE: AGI) (TSX: AGI), IAMGOLD Corporation (NYSE: IAG) (TSX: IMG).