Gold Price Forecast: Interest rate cuts to boost XAU/USD – ING
|Gold shines again with an end to the Fed’s tightening cycle in sight, economists at ING report.
XAU/USD to average $1,900 in the third quarter and $1,950 in the fourth quarter
We believe that for Gold, the Fed policy is still key over the medium term. We believe the downside remains limited for Gold as the Fed is close to the end of its monetary tightening cycle, with the expected hike at the Fed's meeting next week already priced in for bullion.
We see prices moving higher over the second half of next year, given that the Fed should start to pause its rate hiking cycle, while geopolitical instability will also provide headwinds for Gold prices looking forward.
We forecast prices to average $1,900 in the third quarter and $1,950 in the fourth quarter.
We expect prices to move higher again in the first quarter of 2024 to average $2,000 with the assumption around this that the Fed starts cutting rates in the first quarter of next year.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.