UOB Bank expects gold to rise in the second half above this level! by Arab Trader

2023-07-03 12:44:00

© Archyde.com UOB Bank expects gold to rise above this level in the second half!

Arabictrader.com – In the quarterly global outlook report issued by Singaporean UOB Group, analysts expected it to gain strong bullish momentum and surpass the key level of $2,000 an ounce during the second half of 2023.

The most prominent contents of the memorandum in this regard were the following:

In general, not much has changed regarding the main drivers of prices. As in the past few quarters, gold has been mostly driven by movements in US interest rates and the US dollar. Specifically, gold maintains an inverse relationship to the US dollar and interest rates, as the higher the US dollar and/or the higher US interest rates, the more gold tends to weaken. Despite its expected decline in the near term, we maintain our positive outlook for gold prices. We still expect US interest rates to rise over the coming months, as the Federal Reserve reaches the end of its rate hike cycle. Our view remains that the US dollar will also rise, albeit with a bit of a slowdown towards the end of this year, and gold remains an important factor for portfolio diversification. Emerging markets and Asian central banks are expected to continue to increase their gold reserves, particularly China. In general, we maintain our positive view of gold movement in the medium term, and we expect gold to exceed $2,000 an ounce during the second half of 2023, with gold continuing to rise beyond that. We expect gold to rise further, reaching $2,100 an ounce during the first half of 2024.

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