Standard Chartered Raises Gold Price Forecast to $5,000 Over 12 Months

Standard Chartered has raised its gold price forecast to $5,000 over 12 months, following a recent pullback in the market. The bank's senior investment strategist, Cindy Lam, said that they have also restored gold to an 'Overweight' position.

The current gold price of around $4,404 on Tuesday slipped back after stronger US employment data and the prospect of another Federal Reserve rate increase. However, Standard Chartered sees this pullback as a buying opportunity, with Lam stating that the bank's revised forecast is based on an improved price outlook for gold alongside a sharp pullback in the US Dollar.

The three-month forecast is $4,750 an ounce, which would represent a 7.9% gain from the current price. Reaching $5,000 would require a more significant breakout and a further decline in the US currency to reduce the cost of gold for overseas buyers.