Institution: The Federal Reserve will not take any action this year and still maintains its forecast for the average gold price this year at $4,600.
Odaily reports that BMI Commodity Research Department, part of Fitch, remains optimistic about gold, maintaining its forecast for an average gold price of $4,600 per ounce in 2026. The institution also believes that the Federal Reserve will not make any moves regarding interest rates this year. As pointed out last week, the Federal Reserve’s hawkish tone has fueled expectations of rate hikes, creating significant downside risk for gold. However, as long as inflation pressure related to the Middle East conflict subsides as expected with the recent agreement between the US and Iran, the most likely outcome is that interest rates will remain unchanged for a prolonged period. In the short term, gold prices may be driven by signals from Federal Reserve policy, and precious metals are likely susceptible to market repricing and a stronger US dollar. (Golden Ten Data)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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