1134 GMT – Gold appears well supported for the coming months, BMI analysts say, while raising their price forecast for the precious metal for 2024. BMI, a unit of Fitch Solutions, now sees gold at $2,250 an ounce compared to the previous $2,100 per ounce. But with gold “finding itself in a tug-of-war between a less cautious U.S. Federal Reserve (Fed) and high levels of geopolitical tension,” gains could be limited. Fed cuts are key to gold’s appeal as lower bond yields divert investments toward the non-yielding asset, BMI adds. A rise in the US dollar and bond yields, if the Fed continues its hiking cycle, would make gold disappear. And while geopolitical tensions should ensure prices remain high this year, a more optimistic global growth outlook will limit interest in the metal as a safe haven, BMI concludes. ([email protected])
Translators: Kinga Kiss / Nieves Amigo
(END) Dow Jones Newswires
June 27, 2024 08:28 ET (12:28 GMT)
