ANZ Bank analysts have examined the outlook for Gold (XAU/USD) amidst uncertainties in geopolitics and record-high stock markets.
As the US elections draw nearer, volatility is anticipated to increase. A potential change in the governing party in the US poses risks regarding future policies. Against a backdrop of economic and geopolitical tensions, equity markets are reaching unprecedented levels. This situation may prompt investors to become more cautious about potential downside risks rather than focusing solely on upside potential.
The looming US elections are expected to bring about heightened volatility. ANZ suggests that in a scenario where equity markets turn risk-averse, Gold prices are likely to receive support.