Gold is still trying unsuccessfully to break away from the support level of $1800 per ounce. At the beginning of last week, the quotes reached $1823, but fell to the current level.
In the first seven months of 2021, gold fell in price by 5%. It is noted that the losses could have been greater if not for the large purchases of the precious metal by some central banks. The first was Hungary, which tripled its gold reserves in March due to a one-time purchase of 63 tons of gold. This was followed by Thailand, which added 90 tons in April and May, and now Brazil has increased its gold reserves by 41 tons in June. None of these additions were expected.
However, it was recently reported that the Polish central bank is considering buying another 100 tons of gold at an unspecified time in the future. Poland has already added about 100 tons to its stock in 2019 and is now trying to confirm the strong economic situation with the purchase of a similar volume. India, Kazakhstan and Turkey also proved to be active buyers in 2021. It is noteworthy that the momentum has changed towards the demand for gold during a period that is usually weak for precious metals. Exchange-traded funds backed by gold also noted a weak second half of 2020, which was accompanied by a large outflow of funds. This year, the situation in the ETF sector is ambiguous, but the downward trend in funds is weakening. The long-term prospects for the precious metal are still positive, although in the short term the asset continues to look for a foothold.
The forecast assumes a strengthening of the Gold price to the levels of 1805, 1810 and 1820 dollars per troy ounce.