NEW YORK (Scrap Register): Standard Chartered analysts said that they are upbeat on gold prices, reporting that a number of macroeconomic factors fueled gold’s recent rally.
“Scaling back of Fed rate-hike expectations, a weaker U.S. dollar and lower U.S. Treasury yields paint a favorable backdrop for gold prices at the start of the year, and prices have rallied to close in on USD 1,300 an ounce,” Standard added.
“Following the strongest month for exchange-traded-product inflows since January 2017, inflows this month are on track to test two-year highs,” Standard noted.
Standard Chartered added that China’s demand appears to be firming leading up to the Lunar New Year on February 05, while central-bank buying remains stable.
“We remain positive on the outlook for gold,” analysts concluded.