Gold under pressure amid expected more rates hikes by year end

Gold is trading at $1922 per ounce at the time of writing, up by +0.46% versus the previous closing price. During the months of April and May, the price of Gold breached the $2,000 mark and was only within a few Dollars away of the record high. Analysts even expect further decline in the coming months.

Gold prices are expected to remain in the lower bound area of $1,900 in 2024. In the near term, the precious metal is expected to remain under pressure as the markets expect further rate hikes (albeit small ones) by the end of the year.

Into 2024, analysts expect gold prices to remain in the lower bound area of $1,900, averaging $1,920 for the year as a whole.

On the one hand, rate cuts will be positive for Gold as it would reduce the opportunity cost of holding the metal. On the other hand, a rebound in the economy coupled with lower inflation figures would put cap on a price rally.