Gold prices hit 14-month highs amid escalating tensions between Russia and Western powers over Ukraine. Demand for safety lifted Treasury notes, sending real yields lower and gold prices higher.
Gold Price Outlook: Falling Real Yields, USD Weakness to Buoy XAU/USD 2020-12-31 01:30:00 Daniel Moss, Analyst
Gold Prices, US Real Yields, Inflation Expectations, Fiscal Stimulus, President-elect Biden – Talking Points:
Falling real yields and rising inflation expectations may underpin gold prices in the medium term.
The potential for additional fiscal stimulus in the New Year may also put a premium on the anti-fiat metal.
A Bull Pennant formation hints at further upside for Bullion. Advertisement
As expected, gold prices have recovered lost ground in recent weeks, climbing over 7% from multi-month lows at the end of November, on the back of Congress passing a much-needed coronavirus relief package and an ever-weakening US Dollar.