Despite the Federal Reserve continuing to deliver a restrictive policy stance in 2023, Gold posted a very respectable performance, which saw prices hit $2,000 several times. Strategists at TD Securities analyze the yellow metal’s outlook.
Gold could well be range-bound for a quarter or so
With inflation still considerably above the Fed's two percent target, the US central bank is unlikely to signal an imminent easing. As such, the yellow metal could well be range-bound, without a sustained breakout toward our $2,100 target occurring for a quarter or so.
We believe that the combination of an expected Fed dovish pivot by Gold traders in the months to come and very strong official sector buying should lift prices to $2,100+ on a sustained basis in 2024.
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