Scotiabank Identifies Key Factors Fueling Gold Price Surge

Friday, 22 March 2024, 17:44

In the latest insight from Scotiabank, the bank highlights two primary factors driving the upward momentum in gold prices. Despite the anticipation of rate cuts and a weakening US dollar, shorter-term catalysts are sustaining the precious metal's rise. Scotiabank points to the COMEX speculative position and ETF outflows as key indicators for gold's continued growth.

https://store.livarava.com/55718ac0-e874-11ee-9699-5254a2021b2b.jpe — Scotiabank Identifies Key Factors Fueling Gold Price Surge

Scotiabank Sees Two Reasons for Further Gold Gains

Rate cuts are the main catalyst that all the gold bulls are waiting for, particularly if it comes with US dollar softness. However 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 Sees Two Reasons for Further Gold Gains

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