Ole Hansen, Head of Commodity Strategy at Saxo Bank, said his predictions of $3,000 gold prices are becoming more and more possible.
He added, in an interview with “Sky News Arabia”, that central bank requests for gold are still strong as they are, and that inflation is still high and far from the required low levels, which is in favor of the rise in gold.
“Also, according to what we have seen in the past 20 years, the rise in interest rates in America has affected gold prices… and we may see a repeat of this,” Hansen said.
Since the beginning of the year, gold prices have witnessed a series of gains, rising above $2,000 an ounce, more than once this year.
These strong gains for the yellow metal come with the escalation of concern about the banking crisis and the increasing bet on the imminent end of monetary tightening, as well as fears of the US economy slipping into recession.
Investors are awaiting US consumer price data, which is scheduled to be released tomorrow, Wednesday, in search of more clarity on the direction of interest rates during the US Central Bank’s monetary policy meeting in May.
New York Federal Reserve Chairman John Williams said the prospect of the US central bank raising interest rates again by 25 basis points is a good starting point.