According to experts, the gold price will see modest weakness for the remainder of 2022 before recovering. ABN Amro analysts made detailed gold forecasts for the end of the year and 2023.
New Year’s End Gold Price Predictions
Gold prices fell by 3.6% compared to the previous year. Strategists at ABN Amro have lowered their gold price outlook, expecting modest weakness for the remainder of 2022 before prices recover in 2023. Experts say that the price of gold will be $ 1,700 in 2022 and $ 1,900 in 2023:
We expect a modest decline in gold prices for the remainder of this year. There is a crucial support area layering between $1,680-1,700. We expect these levels to be retested and prices to fall below these levels, albeit temporarily. Our new estimate for the end of 2022 is $1,700.
As for the 2023 projections, experts say the momentum will continue due to continued inflation:
The gold price outlook for 2023 is more positive. Not only do we expect the US dollar to weaken, but we also expect the Fed to begin lowering interest rates in the second half of 2023. On top of that, we expect lower US real returns. As a result, gold prices are likely to recover in the coming year. However, we do not believe that gold prices will set a new record.
Short-term prospects
Fed Chairman Jerome Powell, in his speech in Jackson Hole, said that the US economy needs a tight monetary policy until inflation is under control. Gold fell more than 1% on Friday after that. cryptocoin.com That could mean slower growth, Powell said. But he didn’t give a clue as to what the Fed might do at its September policy meeting.
Tai Wong, a senior analyst at Heraeus Precious Metals, commented after Powell’s comments:
Stocks and metals suffer from Powell’s reminder that rates should stay higher for longer, and that perhaps 75 basis points defaulted for September, not defaulting unless the aggregate of data shows otherwise.
Philip Streible, chief market strategist at Blue Line Futures in Chicago, said gold will continue to face pressure as it will have to deal with higher interest rates as there is no dove pivot from Powell.
Standard Chartered analyst Suki Cooper said in a note that gold could see a bearish trend in the coming months. But she added that most of the downside risk is already priced in. Cooper adds that bullion can also benefit from “headwinds, including recession risk, a price-sensitive physical market, already undersized positioning and high inflation.”
