Short, medium and long-term gold forecasts came from ING Bank. According to these predictions, XAU/USD will show a bearish trend rather than a long-term uptrend. Details of gold forecasts and expectations cryptocoin.com‘in
Gold forecasts in ING reports
Gold is on track to record its first annual decline in three years. According to ING reports, the reasons for this decline include: Fed’s readiness for policy rate hikes, the gradual tightening of global liquidity conditions, and headwinds stemming from rising US real yields. These factors could cause a downtrend to the medium-term outlook for gold rather than a complete reversal of the long-term uptrend. Real returns, which put pressure on gold prices, seem to be on the rise. This situation is expressed in the report as follows:
Gold is still trading at a premium above fair value against TIPS, as it includes expanding US inflationary pressure and perhaps some risk premium from uncertainties around the Omicron variant and geopolitical risks in eastern Europe. Looking ahead, we see the risk that the Fed will complete its QE contraction program in the first quarter of 2022, with at least two rate hikes in the second half of next year.
The bank thinks like the Fed on the future of inflation. The bank believes that inflation will gradually slow down through 2022 and that nominal Treasury yields should increase as US monetary policy and global liquidity conditions gradually tighten. According to the bank report:
This, combined with some ongoing risks on the virus front, could continue to offer gold some support over the next few months. Instead of a complete reversal of the long-term uptrend, we have a bearish view of gold in the medium-term.
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