Fed policy will be key for Gold over the medium term, strategist at ING report.

Fed’s rate path crucial to Gold trajectory

“We think the Fed will wait until the fourth quarter, but will end up cutting interest rates more aggressively, at least in the early stages, forecasting 50 bps rate cuts at both the November and December FOMC meetings with the Fed funds rate getting down to 3% by mid-2024.”

“We would expect real yields to follow policy rates lower later in the year, which should prove supportive for Gold prices.”

“We see prices moving higher over the second half of next year, given that the Fed should start cutting rates towards the end of this year.”