Gold Price Forecast: The Fed’s explicit pivot will create a constructive outlook for XAU/USD – OCBC
|The recent rise in Gold prices is set to continue, analysts at OCBC Bank say.
Gold to continue to trend higher on the back of falling real rates
We expect Gold to continue to trend higher on the back of falling real rates amid the Fed embarking on its rate cut cycle.
Our house view expects the Fed to start cutting rates in 2Q24 but markets typically price ahead of that.
In addition, the yellow metal also serves as a risk-off hedge (safe haven proxy) against geopolitical risks and portfolio diversifier. We are broadly constructive on the Gold outlook.
XAU/USD – 1Q24 $2,065 2Q24 $2,092 3Q24 $2,105 4Q24 $2,140
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.