Gold May Face More Downside Through Year-End on Prospects of Further Fed Rate Hikes
Summary
- Analysts said gold prices could decline gradually over the remainder of this year.
- The possibility of additional Fed rate hikes and uncertainty over the future rate path are seen as key factors weighing on gold prices.
- Some analysts said gold prices are currently trading within a range and moving closer to the lower end of support.
Forecast Trend Report by Period
Gold prices could face further downward pressure for the rest of the year, with uncertainty over the Federal Reserve's rate path cited as a key headwind.
Odaily, a cryptocurrency-focused media outlet, reported on October 17 that Hamad Hussain, climate and commodities economist at Capital Economics, said a day earlier that gold prices may decline gradually through year-end.
Hussain pointed to the possibility of additional Fed rate hikes and said market concerns that the artificial intelligence investment boom will end may prove temporary.
Bart Melek, global head of commodity strategy at TD Securities, also said gold is trading within its current range and moving closer to the lower end of support.
He said uncertainty over the Fed's next move remains high, describing it as a major drag on gold prices.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.