I think the reasons are the same as what we've been laying out over the last few months. Credit Agricole notes that the recent market turmoil just adds to that, with a rout in global fixed income and a bit of a stutter in equities. Adding that investors are concerned about ballooning public debt and more persistent inflation pressures in major economies.
Besides that, they point out Fed rate cuts and the fact that real yields continue to stay under pressure as being two other major supportive factors. And amid the US administration's incoherent policy making, gold is also being viewed as a proxy for FX reserve diversification away from the dollar itself. In that lieu, Credit Agricole points to data showing EM central banks stocking up on gold. Well, I'd add on to say that it's not just them as China has been on this trend for more than a year already.
All in all, the firm sees upside risks to gold going beyond their current forecasts with the above themes in play. And with that, they expect gold to remain well supported in the months ahead.
There won't be any rebuttals on that front from me. I'm a gold bull and that hasn't changed whatsoever. The only downside I can imagine for gold will be a technical pullback/correction. But even then, that will just invite more stocking up and buying on dips.
