Gold: Moderately optimistic view - NAB

Analysts at NAB are moderately optimistic on gold, and have retained their year-end target of US$1350/oz.

Key Quotes

“Gold has been trading around US$1300/oz. Its fortunes have ebbed and flowed largely in line with movements in the US dollar. Further, news developments surrounding a possible US-China trade deal have also been an important driver.”

“After boosting their net long positions in gold by the end of March, hedge funds and money managers reduced their holdings in early April. Conversely, governments continue to accumulate gold, with China purchasing 11.2t in March – the 4th consecutive month of purchases.”