Gold: Safety-trade to go on driving prices higher – ANZ

The yellow metal hit a nine-year high as the $1800 resistance was broken yesterday. Flight for safety will continue to drive gold prices higher as increasing coronavirus cases boost expectations for further central bank stimulus, per ANZ Bank. 

Key quotes

“Gold traded at a nine-year high after breaking $1,800/oz as the pandemic surge led to safe-haven buying.” 

“Globally, cases reached 12 million, with the US’s case numbers surpassing 3 million. This is raising expectations of further stimulus measures from central banks, with talk of the Fed controlling the yield curve with additional asset purchases.”

“Investors continue to pile into ETFs and futures market.”