U.S. Bank: 'central-bank money printing should keep gold prices supported'
(Kitco News) - Gold remains in a bullish trend, with prospects for an economic recovery that will take a while and the likelihood that Federal Reserve officials will remain accommodative, said a research note from U.S. Bank Asset Management Group. Gold did not move much last week but nevertheless analysts reiterated their view that the yellow metal remains in a bullish trend. “The potential for future inflation resulting from central-bank money printing should keep gold prices supported,” they said. The bank said recent economic data increase the likelihood of a “more drawn-out recovery and raises the possibility of a more permanent hit” to economic growth. “The likelihood of further stimulus eventually coming from the Federal Reserve and Congress is substantial,” they added. Ultimately, the bank said, treatment and prevention of the COVID-19 pandemic may be necessary before the economy and “normalcy” return and enable equities to trend meaningfully higher. “Treasury yields should remain relatively low given ongoing economic uncertainty and a clear bias from the Fed to keep borrowing costs low,” they also said.