( Kitco News ) – Despite this week’s price drop, gold has more room to the upside and will benefit in the aftermath of the U.S. election amid the COVID-19 uncertainty, said Orchid Research.
"Even though gold’s positioning is heavily long, we think that it has room to become even longer in the weeks ahead, judging by our dry powder level analysis," Orchid Research wrote in said in a Seeking Alpha post on Wednesday. "We think that the aftermath of the U.S. elections will continue to elicit heightened uncertainty, in a context in which additional stimulus measures are needed to fight the COVID-19."
The post-election scenario involves macro uncertainty, more stimulus, and rising coronavirus cases, all of which are supportive drivers for gold.
"This should drive the dollar lower (even though its positioning is already short) and U.S. real rates lower under downward pressure. As a result, we expect investment demand for […]
November 12, 2020 (updated November 12, 2020) Published by StockMan