The institution’s April commodity report notes that in 2021, gold will be trading at an average of $1,700 an ounce. In 2022, World Bank analysts expect the precious metal to trade at an average of $1,600 an ounce. At the moment, the precious metal is attempting to break the $1,800 per ounce barrier. Notably, the current gold price went against expectations of analysts trading lower than than the broader commodity market. However, the World Bank points out that most commodity prices are above the pre-pandemic levels. The institution said compared to other precious metals, gold will fall 4% in 2021, mainly due to weakened investment demands resulting from the improving economy and rising bond yields. The World Bank puts the entire metals ecosystem price to rise 30% in 2021, with an expected correction next year.
Silver to surge in 2021
The silver prices are projected to surge 22% in 2021, powered by rising industrial demand. On average, silver prices will trade $25 per ounce this year, while next year, it is expected to drop $22 per ounce. Elsewhere, the bank notes that platinum has great potential after the metal’s price rallied 24% in the first quarter. The World Bank analysis comes after the price of physical gold plunged in India, one of the key markets. With the country witnessing strict lockdown measures, most stores have remained closed amid dropping demand. Therefore, more dealers are selling gold at a discount of about $2 per ounce.
