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Gold’s ‘strongest price rally’ is coming: Wells Fargo’s 2021 target is $2,200 | The Mesh Report

Gold’s ‘strongest price rally’ is coming: Wells Fargo’s 2021 target is $2,200

The Gold Enthusiast April 1, 2021 Comments Off on Gold’s ‘strongest price rally’ is coming: Wells Fargo’s 2021 target is $2,200

Investors could still see some of the strongest price action in gold this year, according to Wells Fargo, which sees signs of a developing rally.

The driver behind this new spark in prices is diminishing supply growth. And it could get gold up to $2,200 an ounce this year, said Wells Fargo’s head of real asset strategy John LaForge.

“Gold supplies have flipped from excessive to deficient,” LaForge said in the latest update. “Such times in the past have sparked some of gold’s strongest price rallies.”

Due to “excessive supplies,” gold prices have had a difficult time prior to 2018, LaForge pointed out.

“Supply had become excessive in 2011 because gold prices had surged from $250 to $1900 per ounce, during the decade from 2001 to 2011. Many investors were looking for gold during this decade, and they all seemed to find it,” he wrote.

However, this picture has shifted in the past three years, with gold supplies moving from “excessive to deficient.” This is why Wells Fargo has turned positive on gold.

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