ANZ Research discusses its latest outlook for Gold.
"The US 10y Treasury yield recently pushed above 1.4%, representing its highest point since the start of the pandemic. More importantly for gold, the 30y Treasury yield has climbed 20 basis points over the past month to hit 2.18%. The bond selloff has come at a time when the USD’s recent selloff has abated, with the DXY trading sideways for the past two months," ANZ notes.
"With policy makers still advocating immense policy support, the likelihood of bond yields falling is low. However, we now expect US inflation to hit 2.5% this year. Combined with further depreciation in the USD, we see gold’s fair value at USD2,000/oz in the second half of the year," ANZ adds.