Following the meeting last week, we now anticipate one further rate hike in July, with rate cuts not set to follow until the second quarter of next year (previously Q1). This is also likely to postpone any sustained recovery of the precious metal. 

We have lowered our Gold price forecast accordingly and expect sideways trading for the time being. Overall, our forecast for the second half of the year is only $50 lower than before (year’s end $2,000, previously $2,050), which admittedly is hardly worthy of mention. 

Our revision signals that we regard any further upside potential to be limited for the remainder of the year. This doesn’t mean we generally don't see any upside, however: we still expect the Fed to have reached its peak interest rates in the near future and then to gradually begin preparing the market for an interest rate turnaround. Accordingly, we are sticking with our forecast for next year, when we expect the Gold price to achieve a new all-time high of around $2,100.