Gold Holds Steady Following Slight Increase, Analysts at Scotiabank Assess Future Outlook for the Precious Metal:
The robust performance of gold alongside a strong USD appears somewhat unconventional; a potential shift may be on the horizon.
Investor optimism persists as they anticipate lower global interest rates, potentially seeking diversification avenues away from overvalued stocks. Additionally, central banks continue to trim their exposure to the USD, with reports indicating significant growth in net central bank gold purchases over the past two years.
Broadly, history suggests that higher Gold prices are usually associated with a softer tone in the USD, so Gold strength and a firm USD look a little odd; something may have to give.
Credits: fxstreet.com