Neutral Outlook Maintained For Gold Prices In Near Term: Report
NDTV
Global inflation will most likely see a decline towards the end of Q321 and in Q421 despite remaining elevated compared to pre-pandemic levels which will put a lid on gold prices.
Fitch Solutions said on Friday it expects gold prices to trade sideways over the coming months along with bouts of volatility as conflicting factors continue to affect the asset. On the one hand, gold is being supported by still-elevated inflation, falling US treasury yields, rising geopolitical tensions and the rapid rise in Covid-19 cases due to the Delta variant. On the other hand, said Fitch, the US Federal Reserve's normalisation of monetary policy with tapering possibly starting before the end of 2021 as well as the continued easing of restrictions as vaccination rates continue to rise. But a strong global economic growth outlook and temporary strengthening of US dollar will put a lid on gold prices, it added.More Related News