Gold traded around $1,825 an ounce on Friday and was set to decline for the second straight week, as expectations that major central banks will continue to aggressively raise interest rates to target runaway inflation weighed on bullion demand. Federal Reserve Chair Jerome Powell, in a testimony to Congress on Thursday, reiterated that his commitment to reining in 40-year high inflation is “unconditional,” even as he acknowledged that sharply higher interest rates may push up unemployment. Fed Governor Michelle Bowman also backed raising interest rates by 75 basis points again in July and following that with a few more half-point rate hikes. Gold is often viewed as a hedge against inflation and a safe haven asset during economic crises, but higher interest rates raise the opportunity cost of holding non-yielding bullion.
Historically, Gold reached an all time high of 2074.88 in August of 2020. Gold - data, forecasts, historical chart - was last updated on June of 2022.
Gold is expected to trade at 1859.40 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1920.83 in 12 months time.