Gold remains firm after marking a new marginal high due to the previous bullish movement. Scotiabank economists analyze the prospects for the yellow metal.
The strength of Gold and the firmness of the USD seem a bit strange; something will have to give
The outlook remains positive, with investors betting on lower global interest rates, perhaps seeking diversification opportunities away from high values, or, in the case of central banks, continuing to reduce their exposure to the USD (net purchases central banks' gold prices have grown strongly in the last two years, according to reports).
Generally speaking, history suggests that rising Gold prices are often associated with a softer tone in the USD, so the strength of Gold and the firmness of the USD seem a bit strange; something may have to give.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
