Gold Price Forecast: The Fed’s explicit pivot will create a constructive outlook for XAU/USD – OCBC
The recent rise in Gold prices is set to continue, analysts at OCBC Bank say.
Gold to continue to trend higher on the back of falling real rates
We expect Gold to continue to trend higher on the back of falling real rates amid the Fed embarking on its rate cut cycle.
Our house view expects the Fed to start cutting rates in 2Q24 but markets typically price ahead of that.
In addition, the yellow metal also serves as a risk-off hedge (safe haven proxy) against geopolitical risks and portfolio diversifier. We are broadly constructive on the Gold outlook.
XAU/USD – 1Q24 $2,065 2Q24 $2,092 3Q24 $2,105 4Q24 $2,140
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FXStreet Insights Team
FXStreet
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