increase by 25% in 2021
Gold's journey in 2020 was marked by the VIDOC crisis 19 and played its role as a safe haven to perfection. Thus, in August, it broke a new record at over $2,000 per ounce. And even though the good news on the Covid vaccine front has since caused its price to drop, it has still risen by nearly 25% since January 1, 2020.
The energy transition will play a role in this renewed rise in prices, because we are moving from fossil resources, which are very energy dense, to renewable energy, a more diffuse and therefore more expensive production method," says Benjamin Louvet, Commodity Manager at OFI AM.
The new President of the United States Joe Biden announced in July 2020 that he would put in place a recovery plan. As a result, we can expect a decline in the dollar, which should mechanically cause a rise in the price of gold in dollars. This is likely to be less true in euros (or weaker).
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