Gold was climbing again early Wednesday. Despite a bout of selling, there are grounds to think it can keep rising from here amid market turmoil.
The precious metal was up 2.4% at around $3,061 a troy ounce after breaking below $3,000 late on Tuesday.
That drop might raise concerns about gold’s safe-haven potential but analysts at Julius Baer put it down to a mixture of some short-term profit taking, forced repayments for some traders, and the tariff exemption for gold leading to the closing of some trading positions.
“Leaving aside the turmoil of the past few days and focusing on gold’s fundamental factors, we believe that the structural bull market that started around two years ago, and which has been driven by central-bank buying, received a cyclical add-on from the trade conflict and its related growth risks,” wrote Julius Baer analyst Carsten Menke in a research note.
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