Gold

Gold prices extended gains to approach $1900 an ounce on Thursday, touching levels not seen since April last year, as the dollar continued to fall and Treasury yields retreated as investors digest the latest CPI report for the US. The annual inflation rate slowed as expected to the lowest since October of 2021 and the headline CPI fell for the first time since May of 2020, led by a drop in energy costs. Meanwhile, a drumbeat of Fed officials reiterated their hawkish stance this week, with Fed Chair Jerome Powell saying that “restoring price stability when inflation is high can require measures that are not popular in the short term as we raise interest rates to slow the economy.” Gold is highly sensitive to the rates outlook as higher interest rates raise the opportunity cost of holding non-yielding bullion.

Historically, Gold reached an all time high of 2074.88 in August of 2020. Gold - data, forecasts, historical chart - was last updated on January of 2023.

Gold is expected to trade at 1888.93 USD/t oz. by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1960.01 in 12 months time.