XAU/USD rally intact: Scotiabank cites 6 bullish factors for gold continuation

XAU/USD has surged 64% year-to-date, trading near record highs above $2,650, with Scotiabank maintaining an Overweight stance on precious metals despite profit-taking pressures. The bank's analysis highlights six key factors supporting further gold appreciation: persistent central bank accumulation, ongoing geopolitical tensions, Federal Reserve rate cut expectations, structural dollar weakness, inflation hedge demand, and robust technical momentum. Silver has outperformed with gains approaching 128%, while gold mining equities have rallied 130%. Scotiabank analysts emphasize that the fundamental drivers remain intact, particularly with central banks diversifying reserves away from USD holdings. Technical indicators suggest strong support at $2,600, with potential upside targets near $2,800 if current momentum persists. The bullish outlook reflects broader market concerns about currency debasement and monetary policy uncertainty, positioning gold as a preferred safe-haven asset for forex traders hedging dollar exposure.