Gold Price News and Forecast: XAU/USD bullish bias intact into H2 2020
|Gold: Bullish bias intact into H2 2020
Despite the recent consolidation in gold, the yellow metal is predicted to stay bullish in the second half of this year, with additional gains not off the table.
Key quotes: “Warning signs are mounting, and should be bullish gold into the second half. For the near-term, the current bull-run in equity markets will likely remain. Not only is gold likely to benefit from central bank liquidity injections, but it also offers exposure to a weaker dollar and should provide a hedge to some of the downside risks [including US/China trade tensions and civil unrest in the US].”
Gold clawed back losses overnight
Gold clawed back losses overnight as the US dollar weakened precipitously against the Euro in the wake of the ECB meeting, and as the stock markets’ upward momentum has run out of steam ahead of the US Non-Farm Payroll report.
In reality, gold has not done that much this week but, encouragingly, investors were quick to buy the overnight dip which continues to highlight the strength of underlying sentiment. As with all risk assets in this nascent stage of post lockdown economic recovery, price action is bound to remain choppy in the near term. That said, lingering concerns about gold positioning and reluctance to chase the market suggests gold bulls are in desperate need of a fresh catalyst.
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