FXStreet reports that strategists at HSBC discuss XAU/USD prospects.

“The gold to silver ratio is back at around 1:71 after hitting 1:63 on February 1, indicating that silver is losing ground again to gold and implies the rally has turned. If silver does not stir higher again, market attention is likely to shift back to gold. This may mean that the focus will return to issues like risk appetite, the USD and US Treasury yields.”

“Gold has some potential support from geopolitical developments. Italy’s president, Sergio Mattarella, has asked Mario Draghi, former president of the European Central Bank (ECB), to begin talks to form a new Italian government of national unity as the country battles against COVID-19. This came after talks looking at reviving the governing coalition led by Prime Minister Giuseppe Conte collapsed earlier. Pandemic-related uncertainty still has the power to trigger ‘safe-haven’ gold buying.”