Strategists at ANZ Bank reiterate their positive stance on gold over the next three months. Record low US real-yield, delay in tapering, expensive equity valuation and prospects of weaker dollar still suggest XAU/USD to grind higher towards $1,900/oz.
US real yield
“Record low yields are again turning in favour of non-yielding gold investment.”
“Weakness should continue to be a key support for investor demand.”
“Physical demand in India and China is set to improve ahead of festive season.”
“Waning likelihood of monetary tightening looks supportive in the near-term.”