5 Analysts Made Important Gold Price Predictions: Here’s What To Expect!

As investors await more clues about the rate hike schedule from the Federal Reserve’s policy meeting next week, the rise in US Treasury yields and a stronger dollar weighed on gold. The precious metal is trading at $1,811 at the time of writing, down 0.43% on a daily basis. The forecasts of analysts who shared their expectations for gold prices cryptocoin.com compiled for our readers.

Xiao Fu: Gold holding on well despite rumors of tightening monetary policy

Xiao Fu, head of commodity markets strategy at Bank of China International, evaluates the Fed’s stance and its impact on gold as follows:

A tightening monetary policy can have negative effects on gold. However, gold is holding up very well. I think this is mainly because the overall Fed balance sheet is still high.

After policymakers signaled that they would start raising interest rates in March to rein in inflation, the focus is now on the US Federal Reserve’s January 25-26 meeting. Commerzbank analysts share their assessment in a note:

Market participants are likely to refrain from buying gold before the US Fed’s first rate hike. They may be hoping that the Fed’s meeting next week will give them more and/or clearer signals that the Fed will start the rate hike cycle in March.

“If US Treasury rates continue to rise, pressure on gold prices will increase”

While considered an inflationary hedge, gold is highly susceptible to rising US interest rates, which increases the opportunity cost of holding non-yielding bullion. US 10-year Treasury yields hit a two-year high last week on expectations for higher interest rates. Exinity chief market analyst Han Tan comments and forecasts:

Despite the rise in US Treasury yields, spot gold seems to hold above $1,800 for now. However, if higher Treasury rates continue, this could test the bullion’s ability to stay above the psychologically important $1,800 mark.

Drawing attention to inflation risks, UBS analyst Giovanni Staunovo discusses the effect on gold prices as follows:

Currently, inflation risks are leading some investors to continue their gold investments. However, we think that US real interest rates are on the rise and a stronger US dollar will weaken the supporting factors in the coming quarters.

Ounce gold prices – gram gold prices contradiction

Tunç Şatıroğlu, an economist and analyst known in the Turkish market, also shared his views on gold prices. After reminding that the markets where precious metals are traded will also be closed due to Martin Luther King day in the USA, the analyst stated that he expects a rise in ounce gold prices and that the rise may become stronger after the markets open.

On the other hand, Tunç Şatıroğlu, referring to the fact that gram gold prices are also dependent on the Dollar/TL rate due to the dollar-based pricing of ounce gold, frequently asked him, “Sir, should I buy gram gold today?” He mentioned that he was asked and said, “But if you say take it, if an intervention comes to the dollar and a gram of gold falls, I will know from you. If you say no, don’t buy it, even if the dollar does not interfere and grams of gold comes out, I say you don’t mind, the loss is big. I would like an answer accordingly. Thank you very much in advance for your answer.” He shared his interesting question style.

Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!