Bank of America analysts expect the rise in gold prices to continue despite a tough macro backdrop. The bank, in its latest report, yields and dollar; He said this is “notable” as gold tends to be the most critical price catalysts. cryptocoin.com We are giving the details as…
BofA forecasts bullish for gold
According to BofA analyst and lead author Michael Widmer, it is investment flows that are “very flexible” that further support the gold price. BoA’s Global Metals Weekly report said that gold is breaking away from its traditional drivers amid news of inflation, interest rates and currency movements. These market forces have increased investors’ desire to hold gold in a portfolio. Widmer warned that 7 percent inflation put the US Federal Reserve in a difficult position, but that tighter monetary policy would not solve the problem. Widmer used the following statements:
While some of the inflation is driven by local factors, many factors are also at play, including disruptions in the supply chain. We also note that the Fed’s response function has changed. Gradual increases accompanied by falling inflation, stable economic growth and stable markets may be the ideal scenario for US monetary policy, but it’s a tough road. The risk of error is high, and increased stock market volatility tends to favor safe havens, including gold.
The bank also observed that policy normalization contributed to the decline in the cryptocurrency market, noting that this also supported gold. He pointed out that developing countries have been net gold buyers in recent years. The analyst, who thinks that the central banks of such countries have an important scope for adding gold; He stated that gold is a hedging tool for both investors and central banks. He stated that this situation is important as global imbalances are back.
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