Gold Price Forecast: XAU/USD under pressure as markets expect further rates hikes by year-end – Natixis

During the months of April and May, the price of Gold breached the $2,000 mark and was only within a few Dollars of the record high. Analysts at Natixis discuss XAU/USD outlook for the coming months.

Gold prices to remain in the lower bound area of $1,900 in 2024

In the near term, Gold is expected to remain under pressure as the markets expect further rate hikes (albeit small ones) by the end of the year. 

Into 2024, we expect Gold prices to remain in the lower bound area of $1,900, averaging $1,920 for the year as a whole. On the one hand, rate cuts will be positive for Gold as it would reduce the opportunity cost of holding the metal. On the other hand, a rebound in the economy coupled with lower inflation figures would put cap on a price rally.