(Kitco News) – The gold market is struggling to find consistent bullish momentum as prices hold above $1,700 an ounce. However, one research firm said that investors should be a little more patient as the precious metal still can surprise the upside.
The gold market has struggled early in 2021 as bond yields have spiked to a one-year high.
However, Rory Townsend, head of gold research at Wood Mackenzie, said in a telephone interview with Kitco News on the sidelines of the Prospectors & Developers Association of Canada (PDAC) virtual mining conference that he sees the rise in bond yields as a bit of a head fake and that gold prices should recover.
Despite gold’s lackluster performance so far this year, Townsend said that his firm still remains bullish on gold, looking for prices to average the year around $1,825 an ounce.
“Gold has come down quite a bit from its August highs and we think this selloff is a little overdone,” he said.