“Gold prices could be looking at more gains in the next few months as recession fears grow and the Federal Reserve begins to ease, said a bullish research firm.
Demand for the yellow metal is only likely to increase in an environment of lower interest rates and slower economic growth, Orchid Research wrote in the latest Seeking Alpha post.
“Despite a weak start to July driven by less Fed dovish expectations after the stronger-than-expected U.S. jobs report for June, we remain constructive on gold in the course of July. Although the dollar has moved strongly higher after the June jobs report, gold has proven resilient,” the firm said. “The yellow metal has entered a bullish regime in which bullish news flow is more impactful than bearish news flow. As we expect stronger monetary demand for gold in the coming months, we see gold trading higher.”
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