Gold has pulled back sharply from six-year highs above $1,600 registered on Jan. 8. However, despite the correction, ANZ analysts have maintained their bullish view on the precious metal.
Macroeconomics remain supportive for bullion, while strong PGM fundamentals could push prices higher.
Gold remains the risk diversifier and good hedge against elevated geopolitical risks, in the near term.
Renewed risk sentiment could trigger some profit booking, but a complete reversal of flows is less likely.
Weaker physical offtake will not be a strong headwind if the backdrop remains conducive to investment demand.
Gold is currently trading near $1,550 per Oz, having hit a high of $1,611 on Jan. 8 and a low of $1,548 on Jan. 14.
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