Gold has maintained a relatively tight trading range throughout the current year. Analysts at ING examine the future prospects for the precious metal.
Downside risks revolve around US monetary policy and Dollar strength
Anticipating a rise in Gold prices this year, driven by sustained safe-haven demand amid geopolitical uncertainties tied to ongoing conflicts and the upcoming US election, is our outlook. We project an average of $2,150 in the fourth quarter and $2,081 in 2024. This projection hinges on the assumption that the Fed initiates rate cuts in the second quarter, coupled with a anticipated weakening of the Dollar.
However, potential downside risks are tethered to developments in US monetary policy and the strength of the Dollar. The persistence of a “higher-for-longer” narrative could lead to an extended period of Dollar strength, potentially resulting in weaker Gold prices.
