ANZ gold target revised higher to $2,300
ANZ on gold, looking for it to $2,300 in a 6 to 12 month horizon.
This from their note, in brief:
As optimism of a swift recovery in the global economy has evaporated amid outbreaks in coronavirus cases, demand for safe haven assets has returned.
- The flow-on impact has been that bond yields have continued to fall.
- a slump in the USD in recent weeks ignited investor demand.
It's not all positive, with physical demand remaining weak.
- Consumer demand in India and China are down 55% and 48% respectively in H1.
- As a result, the physical market is in a surplus of 1,397t in 2020.
- Gold will be entirely reliant on investor demand plugging the gap for prices to push higher.
There is no doubt that the backdrop remains highly constructive, with negative real yields for the foreseeable future.
we are mindful that if economic sentiment improves in coming quarters, the hurdle for continued growth in investor demand may make the path to this level an arduous one.