Gold Price Resilient Despite Near-Term Headwinds
The gold price has been on a rollercoaster ride over the past few years. It reached a record high of $5,595 in January before being dragged back down to around $4,161 due to energy-driven inflation from the Iran war.
Despite this, the gold rate remains above $4,000 an ounce, with some analysts predicting further gains once the US Federal Reserve's tightening cycle ends.
Last week, Bank of America predicted that bullion would fall to $3,750/oz in the fourth quarter due to near-term headwinds from elevated inflation and a hawkish Fed.
However, HSBC toned down its gold price forecasts on Thursday, citing expectations of further US interest rate hikes and higher oil prices. The bank now sees gold trading at an average price of $4,490 an ounce in 2026, down from a previous forecast of $4,560.