As the week closes out and gold maintains its present clip at or around $1,950 (or more) per ounce, many investors are asking, “how long will gold prices stay at this level?” Surely, during gold booms of the past, the previous record highs were achieved only to be quickly followed by drops in price back down to softer levels. But that hasn’t been the case this time. When gold reached its all-time record high above $2,000 a few weeks back, prices for the precious yellow metal didn’t suddenly nosedive back down to, say, $1,500 or $1,750.
It may be a trend that continues. Analysts at the iconic Swiss banking firm UBS suggest gold prices could sustain their brisk pace for months to come as continued global financial unrest over the pandemic presses on. They forecast gold at around $1,900 to $2,000 an ounce for the near-term future, citing many potential bumps in the road ahead on a prolonged and global economic recovery from the COVID-19 pandemic. Meanwhile, Federal Reserve officials say interest rates will likely stay near 0% until at least 2023, a strategy to help get people spending again during what has been an historic economic slump.
