FX.co ★ Gold remains stuck at $ 1,800

Gold is currently stuck at $ 1,800. Clearly, it needs a new catalyst that would stimulate growth.

Rob Haworth, a senior investment strategist at US Bank Wealth Management, said the yellow metal will most likely remain at this price as investors anticipate a stronger recovery in the US economy.

At the very least, this will take place by September this year.

Haworth said that if the pandemic is brought under control, economic growth will be faster and stronger. Accordingly, interest rates will be raised, which will create an unfavorable situation for gold.

In terms of inflation, Haworth commented that it will last for a long time, which is another obstacle to the yellow metal. He said that high real rates, along with higher interest rates, will prevent gold from growing smoothly.

But one positive factor for the precious metal is increased demand in the emerging markets.