- Analytics
- News and Tools
- Market News
- Gold Price Forecast: Friendlier Fed and falling Dollar strength to remove hurdles from XAU/USD’s upside – MUFG
Gold Price Forecast: Friendlier Fed and falling Dollar strength to remove hurdles from XAU/USD’s upside – MUFG
Gold is MUFG Bank’s most bullish call and is to hit record levels in 2024.
Uncertainty leaves Gold in the driver’s seat this week
Geopolitical tensions have become a key driver for the precious metals complex following developments in the Middle East. The Red Sea has become breeding ground of uncertainty, and this seems to leave Gold in the driver’s seat. The renewed US Dollar weakness has also assisted Gold in holding the high ground and continuing its advance.
Federal Reserve policymakers have this week struck a dovish tone with most speaking about the amount of rate cuts needed in 2024 with very little push back besides the odd comment about monitoring data moving forward. The significant revision to the Fed’s policy path in last week’s dovish pivot reinforces our US rates strategist call for rate cuts to commence early in 2024.
A friendlier Fed and falling US Dollar strength should act to remove fundamental hurdles from gold’s upside path. Indeed, Gold is our most bullish call and is to hit record levels in 2024 on a trifecta of Fed cuts, supportive central bank demand and bullion’s role as the geopolitical hedge of last resort.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
