Outlook for gold – “gold’s story is not yet over”

A client note via RBC on the metal, the bank sees factors still prevalent to support the price ahead:

While we may have seen a reset of sorts in gold’s valuation, its path is not predetermined as we barrel towards 2021 While the market seems to have priced in a new normal for now, prices remain elevated beyond where many macro drivers would imply on their own, as uncertainty still pervades.

even putting the risk of a viral resurgence aside, an effective vaccine will take time to distribute, the economy will take time to recover, and prolonged political uncertainty remains a worry.

While investor flows as measured by ETF flows have levelled out for the most part, we believe that there is still a clear appreciation for gold amid all the uncertainty that still persists. Thus, while the "light at the end of the tunnel" may […]

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