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BMO: investors bullish on gold prices for varying reasons

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(Kitco News) - Investors remain bullish on gold but have varying reasons, said BMO Capital Markets. Analysts issued a research note on views gleamed from virtual meetings with investors in Canada, the U.S. and Europe. Most appeared to look for further rises in both the near term and long term, BMO said. “Investors fall broadly in two groups,” BMO said. One camp looks for unemployment to remain high and S&P companies to continue posting weaker earnings. “This would lead to lower (or increasingly negative) real interest rates, which is positive for gold,” BMO said. “A second group believes that inflation is likely to be pushed higher from fiscal and monetary stimulus programs across U.S., Europe, China and other countries. Inflationary pressures are also positive for gold.” Meanwhile, investors look for continued volatility for base metals for the foreseeable future, although they are constructive in the longer term, BMO added.

BMO: investors bullish on gold prices for varying reasons
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