Gold weakened toward $1,800 an ounce on Friday, hovering at its lowest levels in nearly seven weeks as a strong dollar continued to dampen bullion demand, while a broad selloff in risk assets forced investors to liquidate gold positions to offset losses in other holdings. The dollar is on track to gain markedly against a basket of other major currencies as the Federal Reserve led a global wave of aggressive monetary tightening to combat surging inflation. Fed policymakers indicated this week a strong commitment to bringing down inflation even at the risk of a recession, signaling another 75 basis point rate increase in July. Although gold is widely considered as a hedge against inflation and economic uncertainties, 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 July of 2022.
Gold is expected to trade at 1866.17 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 1907.08 in 12 months time.