Gold tries to retest record highs at $1981, rally has more upside – ANZ
|Gold gave back some recent gains despite the weak economic data. After threatening to break through $2,000/oz earlier this week, the yellow metal came under pressure as investors took profits following the 9% gain over the past two weeks. Nonetheless, economists at ANZ Bank see gold well supported by central bank’s policies and today the precious metal is trying to retest the record highs of $1981.34.
Key quotes
“No doubt investors were encouraged by a vaccine study by Johnson & Johnson, which showed promising results on primates. Human trials have already started in Belgium and the US. Nevertheless, we believe there is still plenty of upside left in this rally.”
“The backdrop remains highly conducive, with unwavering support from central banks likely to see monetary easing policies remain in place for the foreseeable future. This will keep bond yield low, raise inflation expectations and potentially keep the USD weak.”
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