Gold price decreased by 8.3% in the third quarter, extending the year-to-date loss to -9.0%. Nevertheless, strategists at Erste Group Research expect XAU/USD to stablize around $1,700 in the coming quarter.

Uncertain economic environment supports the gold price

“The strong USD and the rising US Fed funds rate and yields are a negative factor for the gold price performance. However, the global slowdown in economic growth and the falling earnings growth among companies should support demand for gold in the medium-term. The high geopolitical risks remain an important factor as well, facilitating a positive performance.”

“We expect the price to increase to about $1,700 in the fourth quarter.”