Gold Price Forecast: XAU/USD to target $2,100 by end of Q1 2024 – ANZ

FXStreet Insights Team FXStreet

Economists at ANZ Bank outline shifts in US economic expectations and their impact on the Gold outlook.

Macro signals are capping upside of Gold prices

The first shift is the ‘Goldilocks’ scenario. The US economy remains resilient as evidenced by strong economic data. As a result, the market has pushed out the possibility of a hard landing. This diminishes safe haven flows for Gold.

The second economic shift is the higher-for-longer interest rate regime. Our baseline forecast is rates are at their peak, but we do not rule out the possibility of one more rate hike, depending on the data. Either way, real rates are likely to lift amid easing inflation. As a non-yielding asset Gold inversely tracks US real interest rates.

Overall, we see short-term headwinds to the Gold price. However, our medium-and long-term view on Gold remains positive. We shift our price target of $2,100 to the end of Q1 2024.

Author

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.

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.