Sustained inflation is raising recession concerns, which should benefit gold, according to economists at ANZ Bank. In their view, XAUUSD could reach the $1,950 mark.

Heightened geopolitical risks should protect the yellow metal

“Supply-driven inflation looks difficult to slow by rate hikes alone and this should keep real rates conducive for gold prices. Signs of slowing global economic growth and heightened geopolitical risks should also protect the price.”

“We expect gold to find a floor at around $1,800, with upside potential of $1,950.”