Gold price faces constrained outlook

Below $1,820 per ounce, gold is at its lowest price since March, a loss of $100. Economists evaluate the prospects for the yellow metal. A barrier to gold in the near term is uncertainty over when US rates and the dollar will peak. The precious metal is trading at 1814.69 at the time of writing.

When risk-free rates increase and the US dollar strengthens, the metal is normally under pressure because non-dollar investors will pay more for it and demand will be muted.

Economists now see a more limited view for Gold as a result of increased opportunity costs, with the metal completing the year around $1,850 instead of $1,950 and climbing to $1,950 by the end of June 2024 instead of $2,100 before.