The strategists of Societe Generale they believe that there is a real probability that nominal rates will decouple from real rates to push gold prices higher.
Waiting… Gold recovery is not over yet
We see US 10-year rate forecasts to ease significantly by the end of 2024 and, with the low-hanging fruit in the fight against inflation already picked up, we anticipate that the gold market will have to adjust higher. CPI forecasts.
We see gold appreciating to $2,200 later this year in irregular moves as inflation expectations adjust to macroeconomic news.
As an additional bullish factor, in our forecast scenario of US rate dovishness, we see a weakening USD, which, along with other USD-denominated assets, should boost Gold.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
