Gold (XAU/USD) has rallied above $2,100. Strategists at ANZ Bank analyze the yellow metal’s outlook. 

Investor demand rises

Gold flirted with a record high, surging above $2,100, as investors continued to pour into the safe haven asset. The uncertain economic backdrop, combined with geopolitical risks has seen investor demand rise. This comes as monetary policy likely switches to an easing bias, a boon for non-yielding assets such as Gold. 

Robust buying is emerging in the physical market, with inflows into the Gold-backed SPDR Gold Share ETF rising for the first time in nine trading sessions.