You will find below a brief summary on gold by Luc Luyet, Currencies Strategist at Pictet Wealth Management.
- Gold prices have moved relentlessly higher since the start of March, reaching new all-time highs in US dollar.
- Higher gold prices have been supported by strong underlying demand for the yellow metal from various traditional sources as well as from global futures markets.
- In the short term, gold may be vulnerable to a deterioration in jewellery and central banks demand as well as high opportunity costs.
- In the medium term, we continue to see gold as attractive and there are upside risks to our current 12-month projection of USD2,350 per troy ounce.
