Gold Price Forecast: $1,860-$1,960 range to hold amid slightly heightened volatility – OCBC
Gold has risen in October on safe-haven flows as geopolitical tensions rise. Economists at OCBC Bank analyze the yellow metal’s outlook.
Geopolitical situation in Israel-Hamas should pose two-way risks to Gold
The higher for longer (rates) narrative that has pinned down Gold over the last couple of weeks appears to see tentative signs of fading as markets look to refreshed comments from Fed officials. An end to Fed tightening should see Gold trade better bid on dip and an eventual Fed pivot, alongside rates easing lower should lend further support to Gold bulls.
In the interim, geopolitical situation in Israel-Hamas should pose two-way risks to Gold prices. Escalation by way of broadening conflict (to involve more neighbours) and/or protracted conflict could see Gold spike, but the reverse is also true when geopolitical risks ease as safe-haven demand for Gold is expected to wane.
We expect $1,860-$1,960 range to hold amid slightly heightened volatility.
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FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
