Listen to the latest market mood for the XAUUSD.

The fundamental picture for gold remains strong. Interest rates around the world are projected to remain weak for the next few years. The Fed is on hold until 2023. The BoE meets today and rates are rock bottom and expected to remain so. The RBA cut rates this week to 0.10% from 0.25% and some central banks actually have negative interest rates. This is a great environment for gold to prosper in. The huge levels of expected US fiscal stimulus are also supportive of a weak USD alongside the large levels of QE.

As US election risks subside, this should support gold buyers.

Trade Risks:

  • The main risk to this trade is if central banks start raising interest rates.
  • Heavy selling in equity markets.