Gold Price News and Forecast: XAU/USD on track to hit record highs before end-2020
|Gold: On track to hit record highs before end-2020
According to the analysts at Bank of America (BofA) Global Research, the bullish momentum in gold is likely to remain unabated through the rest of this year.
Key quotes: “Gold can hit record highs before the end of 2020, looking at Q3. Eyeing the next resistance level at $1800. Thereafter the next breakout level at $1900. Gold-price breakout is occurring now ... eight-week trading range has resumed higher.”
Asia Market: The second-wave US states are driving the risk-off tone
Gold is trading lower this morning due to the strong US dollar, which is the yellow metal’s biggest safe-haven competitor when risk market turns south on Covid-19 related headlines. While the newsreels remain awash with gold fever, the deflationary impact of super spreader Covid-19 beat-down encourages people to sell gold for consumption purposes.
Still, this week's gold demand has been built around the notion (prematurely, in my mind) of a recovery in inflation expectation where everyone was pointing to the rise in oil and hard commodities as the primary reflating principle.
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