Gold (XAU / USD) is down around 15% from its mid-2020 high. Deutsche Bank strategists are not expecting a major rally. The rate of real returns has gone from a sharp decline to relative stability (or even a rise) as nominal rates have started to rise, taking away support for the yellow metal, strategists say.
Key statements:
“A firmer US dollar and stabilizing real yields (after rapid declines in 2020) have removed some headwinds for gold. This has reduced investor appetite for gold, as evidenced by the decline in retail and speculative investor positions. “
“We have revised down our 12-month price forecast, although unexpected events or a one-time sharp rise in inflation expectations could provide some temporary support“.
“Gold price forecast for the end of March 2022: 1.850$/oz“.
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