Gold continues to push higher above $1,880 on Thursday. When geopolitical tensions eventually subside, higher US Treasury yields, a resilient USD, and lower safe-haven demand may hit gold but a floor is close at hand, amid inflation and other risks, strategists at HSCB report.
XAU/USD to find a floor this year
“Gold may come under pressure in 2022 amid a shift in monetary and fiscal policies but a floor is close at hand.”
“Real rates will remain negative and a possible rise in trade and geopolitical risks could help gold. Financial market volatility and COVID-19 uncertainties could also trigger safe-haven demand for gold.”
“A longer-term source of gold demand could come from central banks, which are expected to accumulate more gold reserves, amid portfolio diversification and risk management.”
See – Gold Price Forecast: XAU/USD to reach $1,950 by end-2022 in Fed becomes dovish – UBS
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