Gold will resume its 2020 rally once US election noise dies down – Royal Bank of Canada
The ultimate safe haven, gold, will resume this year’s upward trajectory after the US elections, according to analysts at Royal Bank of Canada (RBC).
Traders will be looking to “stimulus legislation, inflationary prices [and] large debts, so gold can resume the upward trend towards $2,000,” said George Gero, managing director at RBC Wealth Management, as quoted by MarketWatch.
The precious metal was trading at $1,887 per ounce on Monday, well below the $2,075 level reached in August. Analysts pointed to a stronger US dollar, lower equities and options expiration as the main reasons for the drop.
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Gold rallied from $1,450 to a record high of $2,075 in the 4.5-months to August 7. Analysts project that, once the election noise passes, it could be one of the biggest asset winners. Some forecasts vary from $2,100 to $2,500 by early 2021.
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