According to the quarterly world outlook for UOB Group, the price of the Gold rally and surpass the key area of $2,000 per troy ounce in the second half of the year.
Generally speaking, the main factors driving gold have changed little. As in previous quarters, the yellow metal continues to be driven mainly by movements in the USD and US interest rates. Specifically, Gold maintains its inverse relationship with the USD and interest rates. Therefore, cWhen the USD strengthens and/or when US interest rates rise, Gold tends to weaken again.
Despite the near-term pullback, we maintain our positive outlook for gold. We continue to see US interest rates peaking in the coming months as the Fed reaches the end of its rate hike cycle. Our view remains that the USD will also top (albeit with a bit of a lag towards the end of this year). And gold remains an important portfolio risk diversifier. In fact, central banks in emerging markets and Asia continue to accumulate gold reserves, especially China.
Overall, we maintain our positive view on Gold and we expect XAU to trade above $2,000/oz in H2 2023 and beyond, and further up to $2,100/oz in H1 2024.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
