Record gold rally still has legs, global body predicts

Gold has hit multiple records this year, and the rally is likely to still have legs, a report said.

- Somshankar Bandyopadhyay [e-mail]

“The extent and speed of gold’s rally has drawn out comparisons to previous peaks. While there are headwinds that the gold market will naturally face in this environ-ment, our analysis also suggest that current macroeconomic conditions are quite different to prior periods when the gold market reached previous highs,” the World Gold Council said in its Gold Market Commentary for March.

Gold climbed more than three per cent on Wednesday and was poised for its best day since March 2023, Reuters reported. Spot gold was up 3.4 per cent to $3,086.04 an ounce, or as of 1523 GMT. US gold futures rose 3.7 per cent to $3,101.70.

Gold also hit a record high last Thursday before the mentioned deleveraging helped drive a 6.7 per cent top to bottom correction. “The combination of heightened global economic tensions, the risk of stagflation, a weaker dollar combined with falling real yields and inflation expectations will, in our opinion, continue to support bullion,” Ole Hansen, head of commodity strategy at Saxo Bank, wrote in a report.