- Analytics
- News and Tools
- Market News
- Gold Price Forecast: XAU/USD may not sustain levels above $2,000 – HSBC
Gold Price Forecast: XAU/USD may not sustain levels above $2,000 – HSBC
Gold hit a new high in December 2023 and has remained well above $2,000 per ounce so far this year. Economists at HSBC analyze the yellow metal’s outlook.
Pitfalls lie ahead
While market sentiment is bullish, we think that the price of Gold is overstretched and may decline over the near term in the absence of notable economic or political news. The high price of Gold is also limiting demand for jewellery, coins, and bars, mainly in price-sensitive emerging markets, but also in less price-sensitive Western markets.
Gold is historically sensitive to US real rates, and while there has been a significant disconnect in this relationship, we think that positive real rates could be a headwind for XAU/USD this year.
Should the USD rebound, Gold prices may face downward pressure, but a sustained USD weakness should be Gold-positive.
Several bedrock factors will sustain the price of Gold at what would still be a historically high level. For example, geopolitical and trade risks are elevated and may stay high in 2024, as 75 nations hold elections, lending underlying support to gold prices. And central bank demand remains historically strong, triggered by geopolitical risks and portfolio diversification needs, but may not be fully sustained at price levels above $2,000.
© 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
