XAU/USD Outlook Bearish For Q3 on Monetary Dangers, Covid-19 Pandemic
Gold Costs, XAU/USD, Coronavirus, Company Debt – TALKING POINTS
- Gold prices may retreat if a second wave of the coronavirus hits the worldwide financial system
- XAU/USD losses could also be amplified by rising unemployment figures, weak worth progress
- Gold might give up to USD if eroding fundamentals destabilize company debt market
Anti-fiat hedges like gold might give up within the third quarter if a second wave of the coronavirus hits the worldwide financial system and dampens future inflation prospects. Demand for haven-linked belongings just like the US Dollar might amplify XAU/USD’s losses as merchants re-allocate capital from comparatively illiquid commodities to extra frequently-traded currencies just like the Buck.
Rising unemployment numbers and uncertainty embedded in labor statistics may additionally enlarge the enchantment of holding haven-linked belongings. The prospect of one other lockdown in quite a few localities round america may additional dampen worth progress and erode the enchantment of gold. Fed Chairman…