Look Left Trade Right
-
Gold Price Outlook: Falling Real Yields, USD Weakness to Buoy XAU/USD
As expected, gold prices have recovered lost ground in recent weeks, climbing over 7% from multi-month lows at the end of November, on the back of Congress passing a much-needed coronavirus relief package and an ever-weakening US Dollar. This recovery looks set to endure in the near term, as the anti-fiat metal’s relationship with real yields and inflation expectations appears to have recoupled. After all, as a non-yielding asset, gold tends to benefit from falling real rates of return and is also widely considered a hedge against inflation. Moreover, the potential provision of further fiscal support under a Biden ... (full story)