Analyst Note| Mathew Hodge, CFA |
Investor optimism is fuelling a risk-on rally in global share markets. Renewed optimism reflects enthusiasm for a COVID-19 vaccine and its potential to fuel an economic recovery. The Biden presidential win could also help de-escalate geopolitical and trade risks if the U.S. moves to unite traditional allies, rather than act in isolation. But what’s good for economic activity and trade is not necessarily good for gold and the price is down about 10% since the August 2020 peak above USD 2,000 per ounce.