ING Sees Gold Reaching $5,000 an Ounce by Year-End
Summary
- ING said gold could reach $5,000 an ounce by the end of the year.
- ING said real interest rates, the dollar, and expectations for Federal Reserve (Fed) rates are driving gold prices in the short term.
- Markets are watching how the US consumer price index (CPI) and Middle East geopolitical risks could affect gold's price trend.
Forecast Trend Report by Period
ING said gold could climb to $5,000 an ounce by the end of the year as geopolitical risks and macroeconomic uncertainty continue to support prices.
Walter Bloomberg reported on May 11 that ING analysts expect gold to keep rising through year-end despite volatility tied to US-Iran peace talks.
ING said real interest rates, the dollar and expectations for Federal Reserve policy are driving gold in the short term.
If those headwinds ease, underlying demand for gold could strengthen again.
The bank added that whether the Iran conflict reaches a durable resolution will be a key catalyst for any further gains in gold.
Markets are focused on US consumer price index data due Tuesday, which could influence expectations for the Fed's rate path.
Gold futures rose 0.1% to $4,736 an ounce on the day.
Investors are also watching how geopolitical risks in the Middle East and changes in the US interest-rate outlook could shape gold prices.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.