Gold gave back some recent gains despite the weak economic data. After threatening to break through $2,000/oz earlier this week, the yellow metal came under pressure as investors took profits following the 9% gain over the past two weeks. Nonetheless, economists at ANZ Bank see gold well supported by central bank’s policies and today the precious metal is trying to retest the record highs of $1981.34.
“No doubt investors were encouraged by a vaccine study by Johnson & Johnson, which showed promising results on primates. Human trials have already started in Belgium and the US. Nevertheless, we believe there is still plenty of upside left in this rally.”
“The backdrop remains highly conducive, with unwavering support from central banks likely to see monetary easing policies remain in place for the foreseeable future. This will keep bond yield low, raise inflation expectations and potentially keep the USD weak.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.