The price of gold could exceed $1,920 an ounce by the end of this year, beating an all-time record set in 2011, according to Peter Hug, global trading director of Kitco Metals.

“Short-term, especially given the seasonal factors, [gold prices] have a bit of softness, but by year-end, I think the 2011 high in gold, which is $1,920, will be there or higher,” Hug said.

According to the market veteran, while pandemic fears are still far from over, many fundamental risks to economic growth are likely to remain until at least next year.

Prolonged damage to the economy could see another correction in equities and risk assets, Hug said, adding that gold may be pulled down with stocks before another rally takes place.

“I don’t think that would be bullish for the metals. I think the initial reaction for the metals would be lower as people begin to panic and start to raise cash,” he said.

The price of gold hit a record high of $1,920.70 in August 2011. On Thursday, the precious metal was trading at $1,722 per ounce.

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