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Gold Price Forecast: XAU/USD to reach $2,000 level during Q4 as Fed pivots — ING

Concerns around the banking sector have caused a move into safe havens and gold has clearly benefited from this. Although ING economists see a short-term pullback in prices, we expect them to strengthen in the second half of the year.

Fed policy should support gold later in the year

“Fed policy will be key for gold over the medium term. We anticipate a final 25 basis point hike in May, which would leave the Fed funds range at 5-5.25%. Rate cuts will likely be the 2H23 theme, and we see the Fed cutting by 75 basis points in Q4.We expect real yields to continue to lower policy rates throughout the year, which should support equity prices. Gold”.

“While we expect a short-term price pullback, we see gold prices rising in 2H23 and expect spot gold to average $2,000 in Q4 2023. The assumptions around this are that we don’t see further deterioration in the banking sector and that the Fed starts cutting rates towards the end of this year.”

Source: Fx Street

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