Gold Price Forecast: XAU/USD to extend its upside momentum as yields will remain negative – ANZ
|The gold market is finally benefitting from the rising inflation risk, defying recent strength in the US dollar. Strategists at ANZ Bank expect the yellow metal to continue enjoying upward momentum as lower real interest rates are lingering.
Strong risk appetite to fade
“The Fed’s announcement for the start of asset purchases has been dampened by signals of delay in rate hikes. This means that negative interest rates stay longer than expected, it would favour gold investment.”
“We believe the pace of investment in risky assets will slow amid growing ‘stagflation’ risk and consequent central bank policy changes.”
“ETF holdings of gold show net disinvestment, though investors have added some long positions in futures. Demand for physical gold is encouraging, with China imports averaging 25t against less than 10t last year. The premium for physical gold recovered in both in China and India.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.