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Gold is little moved.
Since the beginning of the year, the precious metal has maintained an excellent gain: +13% in USD and +16% in Euro.
Bank of America (BofA) predicts that the price will reach $3,000 per ounce within the next 12-18 months, with a +30% potential upside.
The outlook is based on continued buying of gold bullion by central banks around the world and interest rate cuts by the Fed, which could lead to inflows into physically backed gold exchange-traded funds (ETFs). ).
Analysts say gold continues to be seen as a long-term store of value, a hedge against inflation and an effective portfolio diversifier.
These attributes make it an ideal investment in the current environment of high inflation and geopolitical uncertainty.
The bank also notes a recent survey by the World Gold Council that central banks plan to buy more gold in the coming months.
Gold purchases could accelerate in the second half of this year due to interest rate cuts and increased volatility in U.S. Treasury markets, Bank of America noted.
In this regard, investors’ attention is focused on key data relating to US inflation for further indications on interest rates. Data on the PCE price index, the Federal Reserve’s preferred inflation indicator, will be released on Friday. Expectations for the “core” index are for a further slowdown to +2.6% from +2.8% in May.
Effect
Technical analysis. The short-term trend weakened following repeated calls for prudence on rates by central banks and the note…
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