Ing Forecasts Bullish Gold In The Second Half Of 2023

Ing Forecasts Bullish Gold In The Second Half Of 2023 by Adam Rosen last updated on June 01, 2023

ING Forecasts Bullish Gold In the Second Half Of 2023

The analysts at ING have come up with their recent Gold forecast & have also tied the Gold's performance with the Fed policy. As per the ING report, the fed policy will play a key role in deciding the next direction of Gold during the medium term.

The ING stated that Fed will likely continue its current policy until the end of the 4th quarter. However, this also means Fed will have to introduce rate cuts in the early stages aggressively.

3% Interest Rate By Mid-2024

The strategists at ING believe that a rate hike of 50 basis points will likely happen during the November FOMC meeting. Similarly, a same-sized rate cut is also on the cards during the December meeting of FOMC.

And by mid-2024, the interest rate in the USA will be near 3% or even below that! If we look at this report by ING, it means Fed will likely bring the inflation under control before November's meeting.

Another forecast made by ING was in regard to the real yields. As per ING, the real yields will also likely go down, just like the policy rate, by the end of 2023.

This fundamental change in the Fed policy will favour Gold prices. If you think the current policy is supportive of the US Dollar, which is allowing the outflow from Gold & other metals.

But once the policy changes, the dominant position of the US Dollar will change, which will open doors for the Gold bulls.

However, we also can't deny the fact that this ING forecast depends on a lot of assumptions. The first assumption is that inflation in the USA will be brought under control. The 2nd assumption is that Fed will stop rate hikes and instead move towards rate cuts!

But if the Fed's policy changes as per the ING forecast, it would be good news for all the precious metals such a Gold, Silver, etc.