- Interest for gold has been plunging in recent months amid rising optimism over the vaccine campaign combined with the reopening of the economy.
- A stronger USD and deflation risk could limit the upside gain on the precious metal in the short term.
- However, gold offers good protection against periods of rising uncertainty and market stress; it is defined as a "zero-beta" asset.
- As central banks are expected add another 5 trillion USD of liquidity in the coming two years, we expect gold to rise in the medium/long run.
For further details see:
The Reasons Why Gold Is Falling