Gold Rally Tied to Haven Demand, May Keep Going
Gold's surge in recent days, to a new record high, is mostly likely due to haven demand, according to Commonwealth Bank of Australia analyst Vivek Dhar. "This is likely tied to concerns over the Fed's independence and the legality of U.S. tariffs," Dhar says in a note.
Demand for the precious metal as a haven for investors is "notoriously difficult to predict in respect to timing, duration and price impact," he says.
Still, CBA's forecast for gold to average $3,500/oz in 4Q is already looking too low, says Dhar. A price around $3,650/oz instead next quarter is "now a real possibility," he says. Spot gold is down 0.1% at $3,530.31/oz.
Source: Marketwatch
