Economists at ANZ Bank retain a bullish view and forecast Gold at $2,120 by the first quarter of the next year.

Risk could stem from divergence between Fed’s actions and market expectations

“Prolonged geopolitical tensions, such as that between the US and China, will lend support to investment demand as well as central bank buying. Therefore, we continue to be bullish, expecting prices to reach $2,120 by Q1 2024.”

“The risk to our bullish view could stem from a divergence between the US Fed’s actions and market expectations. Consensus estimates are for a rate cut in 2023, but our baseline forecast is for no cuts in 2023. Any unexpected policy action could trigger price corrections, but such dips should be perceived as buying opportunities.”