A brief note via Citi on the gold market, the positive factors for it (numbering is mine, I may have doubled up on a couple but I like “7” … )
- 1. Low(er) for interest rates
- 2. escalating global recession risks
- 3. (exacerbated by US-China trade tensions)
- 4. heightened geopolitical rifts
- 5 & 6. amid rich equity and credit market valuations
- 7. strong central bank and investor buying activity
are all combining to buttress a bullish gold market environment.
We now expect spot gold prices to trade stronger for longer.
And, as for the risk to gold:
- However, if a hawkish turn from the FOMC may pull back the gold price
