Two Factors Driving Gold Prices According to Scotiabank

Friday, 22 March 2024, 17:44

Scotiabank highlights two crucial reasons for the potential increase in gold prices. Firstly, the anticipation of rate cuts, especially alongside a weaker US dollar, is eagerly awaited by gold enthusiasts. Additionally, two near-term factors could push gold prices higher, such as the COMEX speculative position hovering around average levels and lower ETF inflows, indicating a lack of retail frenzy.

https://store.livarava.com/542a1218-e874-11ee-9699-5254a2021b2b.jpe — Two Factors Driving Gold Prices According to Scotiabank

Scotiabank Analysis: Key Drivers for Gold Price Upsurge

Rate cuts are the main catalyst that all the gold bulls are waiting for, particularly if it comes with US dollar softness.

Scotia outlines two shorter-term factors that could boost gold's momentum:

COMEX speculative position of 222k contracts is at average levels (since 2018) and well below its 2020 peak
ETFs are seeing outflows, suggesting retail still hasn't piled in

This article was written by Adam Button.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

Scotiabank Analysis: Key Drivers for Gold Price Upsurge

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