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Gold Price Forecast: Four factors support a XAU/USD leg higher – ANZ

Economists at ANZ Bank believe XAU/USD could see another leg up as key factors are turning in favour of gold investments. Record low US real-yield, inflation, expensive equity valuation and weaker dollar are likely to encourage strategic allocation in the yellow metal.

See – Gold Price Forecast: Indecisive Fed to underpin XAU/USD above $1800 – HSBC

US real yield

“Record low yield again turning in favour of non-yielding gold investment.” 

US dollar

“Weakness should continue to be a key support for investor demand.” 

Central banks’ gold buying 

“Inflation and weaker USD are supporting central bank gold purchases. Meanwhile, physical demand in India should recover ahead of the festive season.”

Monetary policy

“Fading likelihood of monetary tightening looks supportive in the near-term.”

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FXStreet Insights Team

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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