Gold to get its kick out of geopolitics – HSBC

HSBC Global Research believes gold prices are likely to strengthen on geopolitical risks, although tighter Fed policies may play a spoil sport.

Key points

We expect gold prices to gain from increased geopolitical risks, notably, rising protectionist and populist sentiment

USD strength and tighter Fed polices to present headwinds to old rallies; central bank purchases should increase

Price-sensitive EM buyers to set trading range; our 2017 and 2018 average forecasts are USD 1,282/oz and USD 1,310/oz