Gold Price Forecast: XAU/USD to set a floor amid a wide variety of risks – HSBC

Gold continues to push higher above $1,880 on Thursday. When geopolitical tensions eventually subside, higher US Treasury yields, a resilient USD, and lower safe-haven demand may hit gold but a floor is close at hand, amid inflation and other risks, strategists at HSCB report.

XAU/USD to find a floor this year

“Gold may come under pressure in 2022 amid a shift in monetary and fiscal policies but a floor is close at hand.”

“Real rates will remain negative and a possible rise in trade and geopolitical risks could help gold. Financial market volatility and COVID-19 uncertainties could also trigger safe-haven demand for gold.”

“A longer-term source of gold demand could come from central banks, which are expected to accumulate more gold reserves, amid portfolio diversification and risk management.”

See – Gold Price Forecast: XAU/USD to reach $1,950 by end-2022 in Fed becomes dovish – UBS