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 […]
November 13, 2020 (updated November 13, 2020) Published by StockMan