Gold crossed 2,000 on safe-haven buying amid the ongoing US banking crisis. The sharp fall in US Treasury yields has been supportive of the yellow metal, strategists at ANZ bank report.
Central banks’ purchases remain resilient
“Changing market expectations around the fed funds rate continue to drive Gold prices amid the US banking crisis. The sharp fall in US Treasury yields has been supportive of Gold.”
“Inflation expectations over the next 12 months have retreated to 4%, but the Fed’s determination to tame inflation remains a key short-term risk.”
“Speculative positions have fallen, but ETF holdings are seeing net inflows.”
“Central banks continue to add more Gold to their reserves to hedge against geopolitical and economic risks.”
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