Gold (XAU/USD) has recently surpassed the $2,200 mark, prompting economists at ANZ Bank to delve into the outlook for the precious metal.
According to ANZ Bank analysts, the timing and pace of the easing cycle will play a crucial role in determining the trajectory of gold prices. Additionally, mounting geopolitical risks are coming to the forefront, bolstering haven demand for the yellow metal.
Despite expectations surrounding the Federal Reserve’s easing of monetary policy, the market appears more focused on anticipated rate cuts slated for the latter half of 2024. ANZ Bank predicts that these cuts will commence in July.
While maintaining a positive stance on gold prices, ANZ Bank economists caution that a pullback is probable in the absence of fresh supporting fundamentals in the second quarter (Q2) of the year. Nonetheless, they maintain their year-end price target for gold at $2,300.
The analysis from ANZ Bank underscores the complex interplay of factors influencing the gold market, including monetary policy decisions, geopolitical tensions, and market sentiment. As investors navigate evolving economic conditions and geopolitical uncertainties, the outlook for gold remains subject to ongoing scrutiny and speculation.
