In the near-term, gold may consolidate after a stellar week last week, in the opinion of analysts at HSBC.
“The gold market may take a short break and consolidate in the near term, with the US fiscal package finally passed, and no fresh stimulus imminent from the EU.”
“We think any sense that the US economy could be hit more than other countries could undermine the USD ‘safe-haven’ status. This would likely benefit gold as ‘safe-haven’ demand may be channelled into bullion instead of the USD.”
“Massive fiscal spending on a global level, combined with monetary accommodation and near-zero interest rates in many countries, all contribute to a bullish outlook for gold. These factors will likely support gold longer-term.”
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