Gold has “some upside” in Q1 but the back half of the year sees a sustained fall


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Summary of comments via RBC on their view for gold this year:

Positive factors for gold bode well for gold to average $US1922 over Q1:

  • stimulus package measured in trillions expected from the Biden administration,
  • some tamping down of the Fed tapering narrative
  • raising rates will be “no time soon” 

Less positive inputs:

  • dollar strength and higher rates will remain a headwind for exactly as long as they persist

View ahead:

  • We think gold still has some upside in Q1 2021, particularly if fiscal and monetary policy do not disappoint
  • the second half of 2021 however will bring more sustainable moves lower for gold

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