#XAUUSD @ 2,018.51 Gold Price Forecast: may flirt with all-time high of $2,075 – ING
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Catching some attention has been the move in Gold above $2,000. What does Gold above $2,000 mean? Gold is seen as the flip side of the Dollar trend and of course, a key hedge against inflation, economists at ING report.
“There does not yet seem to be much weight to the narrative that a US banking crisis is going to undermine the Fed’s battle against high and ingrained inflation. And certainly Gold – as a non-interest bearing asset – is doing well compared to the near 5% rates available in overnight Dollar deposits.”
“What also may be at work in favour of Gold are FX reserve management trends. The increasingly bipolar geopolitical world – exacerbated by the war in Ukraine – means that BRICS+ central banks will be keeping a greater share of their international reserves in Gold. This is a structural positive for Gold and a structural negative for the Dollar, one to add to the cyclical negative of what should be a Fed easing cycle later this year.”
“Markets will be keeping a close eye on the US jobs report later this week and whether this takes the gold market to striking distance of its all-time high of $2,075.47 made in August 2020.”
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