XAU/USD is trading in a relatively tight range near $1,920. In the view of strategists at ANZ Bank, the impact of a stronger dollar is set to be muted as geopolitics dominate the market. Subsequently, gold price is expected to stay above the $1,900 level throughout the year.

Investors are building fresh long position in gold

“Geopolitical risk continues to remain the key price driver, which would see strong appetite for safe-haven demand.”

“Record low real-yield and emerging risk of slowing economic growth should encourage investors to invest in gold as a risk diversifier.”

“Aggressive rate hikes and weaker physical demand are key drags for gold.” 

“We expect gold prices to remain above $1,900/oz this year.”