Gold extended losses below the key psychological level of $1800 per ounce on Tuesday, the lowest in near four weeks and following a more than 2% drop the day before, as Federal Reserve chairman Jerome Powell’s reappointment pushed the dollar to fresh 16-month highs and bond yields closer to 1-month highs. The outlook for US interest rates is becoming increasingly hawkish, with at least three Fed officials openly discussing a faster pace of stimulus tapering. Gold previously gained as investors hedged inflation risks and sought safe-haven assets amid economic and policy outlook uncertainties. Higher interest rates dull bullion’s appeal increasing the opportunity cost of holding the non-yielding metal while a stronger dollar makes it more expensive for buyers with other currencies.
Historically, Gold reached an all time high of 2074.88 in August of 2020. Gold - data, forecasts, historical chart - was last updated on November of 2021.
Gold is expected to trade at 1866.03 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1930.61 in 12 months time.