Gold’s safe haven status failed to materialise as the precious metal recorded its worst week since 1983 as prices collapsed after reaching a seven year high of just above USD1,700/oz, strategists at ANZ Research report.
Key quotes
“The selling was driven by a need to raise cash and cover losses in other markets, namely equities. A stronger USD over the past week also weighed on investor appetite.”
“We still expect significant upside in prices. Our gold valuation model suggests current spot prices are undervalued.
“With interest rates being cut by many central banks and Treasury yields collapsing, we see gold prices hitting USD1,900/oz in the medium term.”
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