Although economic growth and rising yields have weighed on the gold price, economists at ANZ Bank see the backdrop as supportive as rising inflation keeps the real interest rate lower.
On Friday, gold (XAU/USD) is consolidating within Thursday’s trading range above $1850, as investors await President Joe Biden’s speech for the next direction.
“We expect gold to find a floor at its current level, as the increasing inflationary pressure suggests lower real rates will remain in place.”
“The key risk to our view is early policy normalisation, if economic growth rebounds strongly.”
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