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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