Factors underpinning bullish outlook for gold

Shining bright: A saleswoman showing gold bangles at a shop in Kolkata, India. The escalation in geopolitical risks in the Middle East may see the precious metal take centre stage this week. — Reuters

PETALING JAYA: There is a growing bullish outlook for gold as a safe and stable investment given the bias to shift towards monetary easing by major central banks, rising geopolitical tensions, aggressive purchasing by central banks and increasing global debt concerns.

OCBC Bank foreign exchange strategist Christopher Wong said while investors have adjusted expectations regarding the timing and extent of the US Federal Reserve’s (Fed) initial rate cut, the consensus that a cut is the next step remains firm.