Gold price could rise to $2,300

Last week, Kitco conducted a special survey forecastinggold priceon the last day of 2021. Of the nearly 2,000 individual investors participating, 1,646 opinions (84%) predicted that this precious metal will surpass the $2,000 mark next year.

The median price of those predicting an increase was above $2,300 per ounce. Of those, the positive group of 266 people, or 14%, said that gold prices would trade between $2,500 and $2,600 per ounce. 152 participants, or 8%, predictedprecious metalwill skyrocket next year, reaching over $3,000.

Individual investors and analysts have positive forecasts for gold prices next year.

The number of investors predicting that gold prices will remain unchanged is only 212 people, equivalent to 11%, thinking that gold prices will trade in the range of 1,900 USD to 2,100 USD, equivalent to the current price range.

Gold is down 8% from its August high by the end of the year, but there is little negative sentiment in the market. Only 298 respondents, or 15%, expect gold to end 2021 below $2,000 an ounce. In particular, only 3% of respondents expect gold to be negative, falling below $1,500 by the end of next year.

Prospects for individual investors onmarketalso in line with analysts' forecasts for 2021. Most major Wall Street banks expect gold prices to average above $2,000 per ounce next year, with several banks forecasting the precious metal to hit above $2,300, including Goldman Sachs, Commerzbank and CIBC.

Analysts are bullish on gold as central banks are likely to continue their ultra-loose monetary policies next year. In addition, rising inflationary pressures as the economic recovery in the second half of the year is expected to keep real interest rates low or negative, all of which are supportive of gold prices.

Bank of America was the most bullish. In April, as central banks and governments around the world adopted unprecedented monetary easing policies and pumped unprecedented amounts of money into financial markets, Bank of America predicted that gold could reach $3,000 by the end of 2021.

The bank has since revised its forecast downward several times, but commodity analysts remain bullish on the precious metal, forecasting an average gold price of around $2,063 per ounce next year.

"As the global economy reopens, gold faces more challenges, making it difficult to reach $3,000. However, ongoing fiscal and monetary stimulus measures will push the precious metal above $2,000 again," Bank of America analysts assessed.

Leigh Goehring, manager of Goehring & Rozencwajg Associates, expects gold prices to rise to $3,000 an ounce.

"2021 will be the year that inflation returns. We haven't had anything like that in 40 years. At some point next year, it will happen," Goehring predicted. "With the massive money printing in 2020, next year is the year when we can't avoid the consequences. So gold could break through $2,100 and challenge $3,000."