Truist Raises Gold Rating to Neutral

Truist Raises Gold Rating to Neutral

Truist upgraded its rating on gold to neutral from less attractive on Thursday, with the assessment led by analyst Keith Lerner. The upgrade was driven by a combination of stabilising real interest rates, ongoing central‑bank purchases of bullion and a weaker U.S. dollar.

Real Treasury yields have stopped rising in recent weeks, removing a major obstacle for gold, and analysts expect further downward pressure after the U.S. Treasury recently doubled buyback sizes for long‑duration debt. Technically, gold has moved above its 200‑day moving average, signalling that downside momentum has eased.

Recent data show central banks continue to add to their gold holdings, providing an important source of support for bullion despite concerns that purchases could slow. The dollar has declined from recent highs amid softer U.S. economic data, including cooling inflation, weaker payroll growth and a dovish Federal Reserve pause, a backdrop that historically supports gold prices.

Gold remains about 15% below its recent highs, but the evidence now supports a more balanced view, according to Truist analysts.

This article was generated with the support of AI and reviewed by an editor.