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 short-term moves in gold prices.
- Markets are watching how the U.S. consumer price index (CPI) and geopolitical risks in the Middle East will affect the direction of gold prices.
Forecast Trend Report by Period
ING said gold could reach $5,000 an ounce by the end of the year as geopolitical risks and macroeconomic factors 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 U.S.-Iran peace talks.
ING said short-term moves in gold are being driven by real interest rates, the dollar and expectations for Federal Reserve policy.
If those pressures ease, underlying demand in the gold market could strengthen again, the bank added.
ING also said whether the Iran conflict sees a lasting resolution will be a key catalyst for further gains in gold.
Markets are watching U.S. consumer price index data due on Tuesday. The report 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 focused on how geopolitical risks in the Middle East and shifts in the U.S. rate outlook will shape gold prices.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
