The strength of the dollar and the tightening of central banks have weighed heavily on Gold in 2022. Next year, ING economists they expect gold to rebound when the Fed easing begins.
There is scope for more falls with the planned adjustment
“We expect gold to remain bearish during the Fed’s ongoing tightening cycle. But while we see more falls for XAU/USD in the near term amid monetary tightening, any hint from the Fed of an easing in its aggressive The rising cycle should start to support prices. For this to happen, we would probably need to see signs of a significant decline in inflation.”
“We should see a pretty drastic drop in inflation through 2023 and this would then open the door for the Fed to start cutting rates through 2023.”
“Assuming we see some easing through 2023, we expect Gold to rally through 2023 with XAU/USD reaching $1,850 in Q4 ’23.”
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.
