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Gold buyers remain on sidelines amid 'some rush to cash': RBC Wealth Management

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(Kitco News) Investors are still sitting on the sidelines as the number of coronavirus cases continues to grow, triggering fears of another round of lockdowns, according to RBC Wealth Management managing director George Gero. "Some rush to cash evidently due to pandemics increases in Europe, vaccines delayed, Brexit problems and coming jobs numbers keeping buyers on sidelines," Gero writes. “Shrinking gold futures open interest 550,539, silver 158,137, but options on gold futures up sharply 1,208,184, silver options 141,896 up with gold.” In the short-term, lack of progress around the U.S. fiscal stimulus talks is weighing on gold. However, in the long-term, inflation will kick in and gold will benefit, Gero adds. "Depreciation of cash, large debts, balance of payments numbers, poor jobs numbers upcoming, political headlines added to usual global worries may bring longer term gold buyers on large dips. Still, year-end $2,000 gold, $30.00 silver while delayed now are expected."

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