Gold's story not yet over despite COVID-19 vaccine optimism – RBC

Dhwani Mehta FXStreet

Analysts at the Royal Bank of Canada (RBC) believe that the bullish bias in gold still remains intact despite the optimism over COVID-19 vaccines.

Key quotes

“Gold's story is not over yet, even if there is a perceived "light at the end of the tunnel" from recent progress in COVID-19 vaccine development.”

“Recent fall in bullion prices is a reset of gold-related expectations during the pandemic, a repricing of stimulus expectations and a realignment of inflation fears.”

“Calls it a near-term overcorrection, adding that this reset may have helped old find a new equilibrium.”

“Gold's outlook can turn materially different if more uncertainty prevails over US election result.”

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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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