We have seen a few windows to buy open over the summer months but don’t expect further declines in gold prices, says Standard Chartered. It says that although the stronger U.S. dollar is currently hemming in prices, there’s plenty of momentum brewing.
“Although the yellow metal faces significant downside risks, it also benefits from tailwinds including recession risk, a price-responsive physical market, already scaled-back positioning and elevated inflation,” said precious metals analyst Suki Cooper.
“The prospect of further rate hikes has quelled investor appetite. Our economists believe the Fed will pause as the U.S. economy is likely to lose momentum in Q4-2022 and that U.S. inflation will start to ease, albeit remaining elevated. Fears around slower growth and rising risk of a recession should buffer the downside to gold.”
