Gold: HSBC believes that gold will exceed $1300/ounce, except if the EUR/USD drops

Today, HSBC bank shares its comments on gold, believing that - in the short term - the fate of the yellow metal will be largely linked to that of the EUR and USD.

The bank believes that the XAU/USD should exceed $1300/ounce, with a market that still seems robust.

The bank notes, for example, that concerns about US inflation have boosted gold purchases, as well as geopolitical tensions between the US and North Korea.

From a technical point of view, the bank notes that the $1300 threshold is an important resistance level, which may not be crossed until several tests have occured.

Regarding downside risks, HSBC recalls, however, that last week's ECB Minutes highlighted concerns about the euro's rise, which could weigh down on the single currency against the USD, which could block the rise of the XAU/USD (a USD increase is a mechanically bearish factor for "   /USD pairs").