Gold to Remain Supported Even if Geopolitical Tension Subsides

Gold prices rose 6% recently, influenced by the Israel-Hamas conflict. However, ANZ Bank points to other driving factors:

1. **Fed Rate Cycle’s End:** As the Fed’s interest rate cycle concludes, declining US yields will make gold more attractive.
2. **US Dollar Outlook:** Despite short-term USD strength, ANZ predicts a bearish trend for the USD into 2024, supporting gold prices.
3. **Central Bank Purchases:** Continued buying from central banks will bolster gold prices.
4. **Seasonal Demand:** Q4 usually sees increased demand for physical gold.

In essence, while geopolitical events can sway gold prices short-term, various elements support a longer-term upward trend.

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