SMM: after a sharp fall this week, the gold market is now stable around $1880 / oz. Although gold has been hit by the vaccine news, which has boosted market confidence, this does not mean that the story of gold ends here.
Gold is expected to continue to gain support in the future, the Royal Bank of Canada (RBC) said in a recent report.
"although there have been twists and turns in gold prices, the trend after that is uncertain."
The bank said that the market has almost taken into account this new normal, asset prices do not really show macro performance, and there is still great uncertainty in the market as a whole.
In addition, even if the positive news of the vaccine is true, it will take time to distribute, the economy will need time to recover, and continuing political uncertainty in the United States is worrying.
The bank believes that despite recent fluctuations in gold prices and fluctuations in gold ETF holdings, gold is undoubtedly welcome in the context of great uncertainty.
"although it looks like light is coming in the dark and the upside risk of gold prices is limited, we believe that the story of gold is far from over."
The bank expects gold prices to be $2012 in the first quarter of next year, $1911 in the second quarter, $1848 in the third quarter, and $1801 in the fourth quarter, with a full year of $1893 an ounce.
