Gold (XAU/USD) found some support near the $1675 region and is edging higher on Tuesday. The yellow metal should remain resilient as the US dollar is set to resume its downtrend while real yields are not expected to march forward in the coming months, per Standard Chartered.
“We continue to view gold as a core holding and retain our bullish bias on a 6-12 month horizon, underpinned by our expectation of a weaker USD and range-bound real yields.”
“Moving forward, inflation will likely creep higher as the global economy recovers, but we expect nominal bond yields will be capped by the Fed. This means real yields are unlikely to rise significantly, while the USD should gradually resume its downtrend.”
“A key support zone is expected at around 1,660-1,690.”
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