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Can gold rally continue?

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ETFWorldSavior wrote a column · Feb 24, 2022 01:12
As Putin declared a "military invasion" and Ukraine declared a state of war, safe haven money poured into gold again. Gold futures jumped $30 to a 14-month high above $1,940.
Can gold rally continue?
Gold related funds have also been robbed of funds. Holdings in the $SPDR Gold ETF(GLD.US)$ , the world's largest gold ETF, have risen more than 50 tonnes since hitting a 20-month low in December.
Can gold rally continue?
Will gold, its related stocks and ETFs follow the gold price and maintain its current rally?
Goldman Sachs: Raised its 12-month gold price target to $2,150
Jeffrey Currie, head of commodities research at Goldman Sachs, wrote recently that gold has historically tended to react to geopolitical risks that directly affect the U.S. and that with tensions rising over Ukraine, gold is clearly the "currency of last resort."

On the other hand, although there is a strong negative correlation between gold price and us real interest rate, the negative correlation between gold price and US real interest rate tends to fail in previous US interest rate hike cycles. Because "markets tend to focus more on the impact of higher interest rates on economic growth, and gold's safe-haven attributes are highlighted when there are concerns."
UBS: Gold to $1,600 an ounce by end 2022
Joni Teves, an analyst at UBS, expects the gold market to refocus on macro factors such as real interest rates, Fed policy and the outlook for economic growth. While gold's current upward trend continues, its recent rally will be "short-lived" as geopolitical risks recede.

As the current quarter draws to a close, the Federal Reserve is widely expected to raise interest rates in March, which tends to push up yields on assets such as Treasury bonds, making non-yielding assets such as gold less attractive.
Citi: short term bullish but long term bearish
Citigroup analyst digital Doshi pointed out: "in the short term, apparently by inflows into gold market situation in Ukraine, the stock market volatility, and inflation hedge demand support. In addition, the (inflation) monetary policy mistakes and also increased the risk of a recession, it provides further support for the gold."
But Doshi also noted that the outlook for precious metals will be more challenging in the long term as the Fed's rate hike cycle begins. He is bearish on gold for the second half of this year and 2023, forecasting it will fall to $1,675 an ounce.
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  • 71576866 : the people set up all this s*** and make like it's coming from other people saying this and saying that was only coming from them you can see the thing buffer before changes it to somebody else's account but #whatever you want to call it

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