US Bank: 'Gold prices remain in a bullish longer-term trend'
(Kitco News) - US Bank Wealth Management maintains a bullish outlook on gold for the long term. Prices rose 3% last week, which analysts said was the result of investors seeking shelter from volatility in the stock market. “Gold prices remain in a bullish longer-term trend, though prices have been generally stable for the past two months,” US Bank said. “The risk of future inflation resulting from central-bank money printing and low interest rates should continue to support gold prices.” Analsyts said they look for a mixed economic recovery rather than quick return to long-term trend growth. “The U.S. economy is flirting with deflation in consumer prices for the first time since 2015, driven by declines in energy, transportation and lodging,” US Bank said. “Conditions are in place for a moderate resurgence of inflation in the coming few quarters, because energy prices have stabilized. Still, the massive drop of economic activity will present a headwind to core inflation over the coming year.”