Improvement in investor sentiment, aggressive monetary policy easing, ultra-low interest rates and fiscal stimulus have all supported gold prices, as Georgette Boele from ABN Amro notes.
Key quotes
“Even though we recognise that the drivers are supportive for gold prices, we don’t expect another strong rise in prices.”
“We remain cautious and we expect another round of risk-off in financial markets to support the dollar and to trigger gold position liquidation. But gold price weakness will probably be less severe than we had originally forecasted.”
“New gold price forecast for Q2 is $1,575 per ounce and for the end of 2020 $1,700.”