Analysts at the bank are citing:
- expect the Fed Funds Rate to climb to 5% by the spring of 2023
- and thus the US dollar is therefore likely to remain strong for quite some time yet
- which provides a headwind for gold, to persist for some considerable time
- $1,700 per troy ounce for the end of 2022 (previously $1,800)
- “The lower starting level, noticeably higher interest rate forecast and lower prediction for the EUR/USD exchange rate also translate into a lower path for the gold price next year. We expect gold to climb to $1,800 per troy ounce by the end of 2023 (previously $1,900).