fxs_header_sponsor_anchor

News

Gold Price Forecast: XAU/USD can outperform at the end of Fed tightening cycle – OCBC

Economists at OCBC Bank maintain a constructive outlook on Gold prices

Risk of another 1-2 more Fed rate hikes can dim the appeal of Gold in the near term

Near term, the risk of another 1-2 more Fed rate hikes can dim the appeal of Gold but to put in perspective, the Fed is closer to end of tightening cycle. Historically, Gold prices can outperform at the end of Fed tightening cycle.

While opportunity cost of holding Gold has risen, we reckon it should not be long before real yields ease lower at some stage. This can be supportive of Gold prices. 

We also favour long Gold as a risk-off hedge (safe haven proxy) against slowing global growth or any risk-off market event like the US banking turmoil that saw a surge in Gold prices.

Gold Forecast: 3Q23 2,030 4Q23 2,050 1Q24 2,050.

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.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.