Listen o the latest market mood for the XAUUSD pair.

Asian equity markets traded broadly lower after the continued fall in oil prices overnight and WTI crude futures had another double digit percentage loss as it briefly went below $11 a barrel.

With the risk tone mixed at the moment it is worth looking at the medium term outlook for gold. Gold prices are currently subdued and below the $1700 level. However, the outlook for gold medium term is bullish.

The last period of helicopter money during the 2008/2009 financial crisis saw the gold price almost triple from 2007 to 2013. Many analysts believe gold and silver are heading much higher now as well as the fundamentals underpinning the metals are so strong. With yields heading lower and lower from central banks cutting their interest rates gold offers a store of value which is soon likely to prove attractive to investors.

  • Expect gold and silver buyers at market and pullbacks.
  • We expect this outlook to play out over the next 6-12 months.
  • The main risk to this outlook remains to be any very positive coronavirus news which would give the market a ‘V’ shaped recovery.

 


HYCM Lab is a financial analysis source that provides regular insights on how global news affects the markets including forex, commodities, stocks, indices, and cryptocurrencies*. Run by the HYCM team, it equips traders with everything needed to make informed trading decisions.