Dollar strength to cap upside in gold - Reuters Poll

Analysts polled by Reuters expect gold, a classic haven asset, to consolidate below recent highs during 2020 and 2021 as bullish pressures emanating from increased demand from investors will likely be offset by the strength in the US dollar and weak retail consumption. 

Key points (Source: Reuters)

The poll of 37 analysts and traders conducted this month returned a median forecast for gold prices to average $1,639 an ounce in 2020 and $1,655 in 2021. 

Gold will likely be pressured by a strong US dollar, which makes gold more costly for buyers with other currencies, and due to plummeting demand in places like India and China where many consumers are locked down and losing income.

Gold is trading at $1,687 per ounce, representing a 10.6 percent year-to-date gain. Prices hit a 7.5-year high of $1,747 last week.