BAKU, Azerbaijan, May 14. As gold price continues to decrease, further decline is expected to eventually hit a benchmark of $1,600 per ounce by year-end, Trend reports via Capital Economics, UK-based research and consulting company.
As of the latest data (May 13, 2022), gold price fell close to $1,800 per ounce, which is a three-month low over the week.
“The main driver appeared to be the appreciation of the US dollar which hit another 20-year high on Thursday. It may also be the case that the US April inflation data, published on Wednesday, weighed on prices,” Capital Economics said.
According to the forecast, gold price in the second quarter of 2022 is expected at $1,900 per ounce, with further decrease to $1,800 in the third quarter, and eventually $1,600 in the fourth quarter. Expectations for the beginning of 2023 are also low - $1,590 per ounce.
“Although inflation remained high, the data suggested that it may have peaked, which would reduce the appeal of gold as an inflation hedge,” Capital Economics said.
Follow the author on Twitter: @mariiiakhm