Due to the lack of a convincing explanation for the rise in the value of Gold, we are sceptical that the precious metal will be able to maintain its gains in the short term, let alone extend them further.

However, it is unlikely that prices will fall back to the levels seen at the end of February as the Fed is expected to cut interest rates from June, which should support Gold. 

Nevertheless, further upside potential is likely to be limited in the medium to long term. This is because a pronounced cycle of interest rate cuts in the US is unlikely, given the persistent risks of inflation. 

We have recently ‘only’ raised our Gold price forecast for the end of this year and the end of next year from $2,100 to $2,200.