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Strategists at ANZ Bank expect gold to hit a record high in the second half of 2020 due to a challenging economic environment though an increase in risk appetite has been a strengthening headwind for the yellow metal.

Read: Gold bull trend to resume for a test of $1796/1803 – Credit Suisse

Key quotes 

“A kick-start to another rally in the gold price remains elusive. The market’s confidence that the most acute stage of the pandemic has passed in many countries has seen risk appetite improve. With investors now betting stimulus measures will bridge the gap to more normal growth.” 

“We remain bullish over the medium-term. The macro backdrop is challenging, despite market confidence in the trend towards normalised growth. The expansion of central banks’ balance sheets shows no sign of abating, while geopolitical tensions escalate.” 

“We think those investors who continue to raise their allocation to precious metals are sitting on a gold mine.”