Summary of comments via RBC on their view for gold this year:
Positive factors for gold bode well for gold to average $US1922 over Q1:
- stimulus package measured in trillions expected from the Biden administration,
- some tamping down of the Fed tapering narrative
- raising rates will be "no time soon"
Less positive inputs:
- dollar strength and higher rates will remain a headwind for exactly as long as they persist
View ahead:
- We think gold still has some upside in Q1 2021, particularly if fiscal and monetary policy do not disappoint
- the second half of 2021 however will bring more sustainable moves lower for gold
