Gold price risks remain skewed to the upside

February 26, 2019

New York (Feb 26)  The fundamental backdrop for gold remains favorable, said Standard Chartered in a research note issued just ahead of the weekend.

 The metal has eased since its multi-month highs in the middle of last week. While technicals suggest the next move for gold is lower, the macro backdrop remains broadly supportive.

 Standard Chartered said, noting that speculative investors have been adding bullish exposure to the metal and not just buying to exit bearish positions.

“Retail investor demand in the U.S. – notably absent in the past two years – has also picked up,” the bank said. “Easing of U.S.-China trade tensions and heightened uncertainty surrounding Brexit are more likely to stoke localized demand.”

However, continued central-bank buying offers a cushion for prices amid softer physical demand. Barring near-term profit taking, risks remain skewed to the upside.


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