Gold Price Analysis: Rising inflation and weaker dollar to support XAU/USD – ANZ

With rising inflationary pressure and the Fed indicating it will continue accommodative policies, strategists at ANZ bank see the backdrop as broadly supportive for gold. Furthermore, physical demand is showing signs of revival, with Indian imports getting back on track.

See – Gold Price Analysis: XAU/USD rallies seen as corrective while below $1765 – Commerzbank

Key quotes

“We see rising inflationary pressure to benefit gold by keeping the real rates lower and weighing on the US dollar.”

“US stimulus measures should weigh on the USD, providing support for investor demand. And the risk of a correction in equity markets should see institutional investors turning to gold to diversify their portfolio risk.”

“Falling gold prices can help boost physical demand in India and China, which could mitigate some of the liquidation in exchange-traded funds (ETF) holdings.”