The outlook for gold prices remains broadly positive, yet caution is warranted. Currently, gold is exhibiting an unusual correlation with the US dollar and both 5-year and 10-year US real yields—a relationship typically transient and lasting only about 3 to 6 months. Should gold prices align once more with central bank movements, stability against the US dollar and a modest rise against the euro are expected, reflecting divergent Federal Reserve and European Central Bank policies. Despite these trends, the current supply of physical gold is adequate, and central bank purchasing levels do not fully support the high market prices. Consequently, the forecast for gold remains pegged at $2,000 per ounce by year-end.
Posted: 2024-04-16 14:40:59.000000