Wells Fargo Lowers Gold Price Target as Precious Metals Rebound

Wells Fargo's Investment Institute has reiterated its positive outlook for precious metals, including gold. According to their latest report, gold prices are expected to gain an additional 11% between now and year-end. This forecast comes as gold prices have recently rebounded due to falling rate hike expectations.

The strategists at Wells Fargo pointed out that despite gold's weak performance since March, there are several underlying strengths supporting its price. They noted that international investors remain constructive, with Asian investors being persistent purchasers of gold during Asia's trading hours.

Wells Fargo sees resilient global demand as a reason for optimism and believes the rebound in central bank purchases during the second quarter is also supportive of gold prices. However, they cautioned that the path higher will be uneven due to international demand being challenged by U.S. monetary headwinds.