While the rally appeared to pause, analysts who say gold is overvalued aren’t expecting a substantial decline. A correction probably will be measured, thanks to the weak dollar and chronic turmoil in the global economy, BNP Paribas SA said.
Gold Spot Tips : Gold Spot Above $1930 Target $1972—$2020 – Neal Bhai Reports (NBR)
In July, gold spot surged 11%, the most since 2012, as investors weighed a weaker dollar and record-low U.S. real yields. Strategists are now considering alternatives to government debt, such as cash, credit, dividend shares and gold. RBC Capital Markets said that gold looks like a “freight train” due to haven demand.
The coronavirus pandemic prompted unprecedented amounts of stimulus to shore up economies, including lower rates, which are a boon for non-interest-yielding gold. Simmering geopolitical tensions are boosting demand.
U.S. Secretary of State Michael Pompeo said the Trump administration will announce measures shortly against “a broad array” of Chinese-owned software deemed to pose national-security risks.
The economic data on Monday drove copper and industrial metals higher, erasing earlier losses.
Copper for three-month delivery on the London Metal Exchange rose 1.2% to $6,490 a metric ton.
