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Goldman Sachs says the risk of inflation is “greater than at any other time since the 1970s,” due to pledged green spending plans in China, Europe and the US by Joe Biden, the president-elect. The bank, which expects the Federal Reserve keeps rates on hold until 2025, predicts gold will reach $2,300 an ounce in the coming months. Citi, meanwhile, predicts gold prices will set fresh highs in 2021, as central bank buying keeps yields on other assets suppressed.

“Gold markets will probably be pulled higher as reflation concerns grow with the recovery and investors look to buy the currency of last resort,” Jeff Currie, head of commodities research at Goldman Sachs, said.

But others think any speed-up in price rises will be outweighed by the effect of the wider economic rebound.

Macquarie’s Mr Garvey said it was an “oversimplification” to say gold trades with inflation. “It trades on the interplay between inflation and interest rates,” he added. “We’re not saying you don’t get a rise in inflation expectations — but we think you get a larger rise in nominal yields.” —The Financial Times Limited 2020