After gold prices hit an all-time high of US$2,075.47 ($2,843.61) an ounce on Aug 7, Fitch Solutions reckons the precious yellow metal could trade at an average level not too far off from that going forward.

Gold is currently trading at about US$1,950.24 an ounce.

The research house says it has raised its average gold price forecast to US$1,850 an ounce in 2020, compared to US$1,680 an ounce previously.

It has also forecast gold prices to average at US$1,850 an ounce in 2021.

According to Fitch, the global recession, low bond yields and rising geopolitical tensions are expected to support gold prices in the short term, owing to the metal’s safe haven status.

“From a technical perspective, we believe gold prices remain positioned to the upside, respecting the underlying long-term uptrend as concerns over the global economy remain over the coming months, supporting safe haven assets including gold,” says Fitch in an Aug 14 commentary.

However, in 2021 and beyond, competing economic factors such as easing geopolitical uncertainty and rising central bank demand for gold could cap gold price growth, it warns.